September 2004
Economic trends continue upward, yet slow to recover
Metro Denver's economy continues to show more consistency and positive movement, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for September 2004.
While the nation's economy continues to expand modestly, recovery is occurring more slowly in Metro Denver. Signs of recovery however are looking optimistic with ten indicators moving in a positive direction for the month. Economic conditions are holding steady on an annualized basis, with 11 economic indicators continuing to post positive annual movements this month.
The number of people unemployed is declining in response to gradually increasing employment opportunities. The unemployment rate in Metro Denver decreased to 5.1% in July after increasing slightly in June to 5.3%. While further job cuts throughout Metro Denver are not out of the question, hiring expectations in Metro Denver are even more bullish than the national level. About 36% of the companies report hiring plans for the July to September period, up substantially from last quarter when only 14% planned to add workers.
“While our local recovery is still poking along, the increase in a number of indicators such as increased air travel, rising retail sales and a significant up-tick in new housing permits, indicates rising confidence in the future and bodes well for a stronger second half of the year,“ said Tom Clark, executive vice president of the Metro Denver EDC.
Almost 4.3 million passengers traveled through Denver International Airport in June, making it the busiest month ever since the airport’s opening in February 1995 and the first month passenger travel has reached above the four million mark. The year-to-date passenger total of 21.7 million is an amazing 21.7% higher than last year’s total at this time.
Another positive indicator shows that residential construction activity in Metro Denver is starting to pick up. Total residential construction for the first half of 2004 is up 23% from the same period last year, according to the number of residential building permits pulled. The number of single-family permits has increased 15.7% so far this year, rising to 7,321 units.
The Monthly Economic Summary provides a snapshot of metro area economic activity and its relation to regional and national economic trends.