August 2004
Healthy hiring projections and consumer optimism good news for economy
Both companies and consumers are driving Metro Denver's economic recovery, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for August 2004.
Hiring expectations in Mmetro Denver are even more bullish than at the national level. The most recent Manpower Employment Outlook Survey showed that 36 percent of responding companies report hiring plans for the July to September period, up substantially from last quarter when only 14 percent planned to add workers. Similar to last quarter, only 2 percent of the companies indicated that staff decreases are anticipated.
On the consumer front, the consumer confidence index for the mountain region posted a large increase in June, rising from 99.3 in May to 121.5 in June. Consumer confidence on a national level also rose from 93.1 to 101.9 over the same time period. Confidence levels are about 20 points higher than they were at this time last year.
“We feel this data indicates that the economy is rebounding. Business growth has always driven our economy and will be the prime factor in sustaining our economic recovery and growth," said Tom Clark, executive vice president of the Metro Denver EDC. “When employers are confident enough to ramp up their workforce, that benefits the economy. When employees are confident about their jobs, they are more likely to make purchases."
Total nonfarm employment in Metro Denver rose by 8,200 positions in June, a 0.6 percent increase over May. The increase marks the fourth consecutive month of employment gains for Metro Denver.
In July, the metro area continued to show consistency and positive movement in most economic indicators, with nine indicators moving in a positive direction. In addition, economic conditions are holding steady on an annualized basis, with 11 economic indicators continuing to post positive annual movements this month.
The Monthly Economic Summary provides a snapshot of metro area economic activity and its relation to regional and national economic trends.