October 2005
Rising energy costs and impacts of Hurricane Katrina and Rita affecting national economy
The Metro Denver and Colorado economies continue to show slow, steady improvement, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for October 2005.
The impacts of the Gulf Coast hurricanes were evident in many of the national economic statistics released during the past month with rising unemployment rates, slower employment growth, higher inflation and falling consumer confidence. Consumers continue to be plagued with rising energy prices and higher interest rates, although energy prices have retreated somewhat since last month.
Colorado’s economic conditions also weakened in the face of these challenges. In Metro Denver, only 7 of the 18 indicators moved in a positive direction for the month, down from 11 last month. While some of the changes are seasonal in nature, a more cautious atmosphere prevails.
Still, annualized activity remains fairly consistent although only 14 economic variables are now posting positive changes for the year, down from 16 indicators last month. The four indicators which are not currently posting annual improvements include the stock market, home sales activity, home foreclosures and home construction.
The Monthly Economic Summary provides a snapshot of metro area economic activity and its relation to regional and national economic trends.