February 2006
Gains in commercial real estate, solid job growth, and uptick in tourism stats all positive
The Metro Denver region finished 2005 with solid gains across most economic fronts, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for February 2006.
Total nonagricultural employment in Metro Denver reached 1,367,800 workers in December 2005, with the addition of 4,700 new positions. December employment levels stand 1.3% higher than in December 2004, with the addition of 17,500 new positions. Metro Denver's unemployment rate decreased in December 2005 to 4.5%, the lowest rate reported since September 2001.
Retail sales were up 6.1% through the first 11 months of the year. Tourism activity was higher, with solid gains in air traffic, hotel occupancy, and extra boosts from various special events taking place in the Metro Denver region. A record 3.1 million skiers hit Colorado's slopes from October 15 to December 31, 2005, drawn by significant snowfall in the central and northern mountains.
Passenger traffic at Denver International Airport reflected an uptick in tourism, posting an increase in December (from November) that was 1.5% higher than December 2004 levels. Almost 43.4 million passengers traveled through Denver International Airport in 2005, a 2.6% increase over 2004. Passenger traffic in 2005 reached a record high, surpassing the previous record set in 2004 of 42.3 million passengers.
Improvement is also noted on the commercial real estate front. Office construction increased in the fourth quarter of 2005 to its strongest level since the last quarter of 2002. More than 1.34 million square feet of new office space is currently under construction in Metro Denver, with over half of this new space located in the City and County of Denver.
"All of the elements are in place for steady economic growth in 2006," said Tom Clark, executive vice president of the Metro Denver EDC. "A renewed confidence by Metro Denver's companies is evidenced by new construction and leasing in the office market and the fact that a majority of companies say they plan to add staff this year."
For the month, 11 of the 18 indicators moved in a positive direction, down from 12 last month. Annualized activity remains fairly consistent with 13 economic variables posting positive changes for the year, the same as last month.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.