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The Vectra Bank Small Business Index for Colorado rose to its highest level of the year in March.  The increase in the unemployment rate, which made it easier for small businesses to fill job openings, was the biggest positive contributor.

The Colorado Business Confidence Index from the University of Colorado at Boulder Business School fell to 45.1 in the first quarter, indicating expectations of a contracting economy for the second consecutive quarter.  The Colorado Index was a bit stronger, at 46.8, but was also in the negative range for the second quarter.

A survey of rural bankers conducted by economists at Creighton University in ten states Midwestern/Plains including Colorado fell to 46.3 in March, an all time low, although the survey only began in 2005.  An index below 50 indicates a contracting economy.  Bankers said farm income was at a record in many areas.

Colorado State University economists predict a slowing northern Colorado economy, with only 1.6% job growth (3,500 new jobs) in 2008.  This is a downward revision of 500 jobs from their October forecast.

A recent RTD study showed that a record number of passengers used public transportation in metro Denver in 2007.  There were 96 million passenger trips recorded last year, up 11.6% from 86 million in 2006. 

March 2008 sales tax collections (February sales) in Colorado Springs fell 1.26%, on top of a 3.72% decline the previous months.  Through November 2007 (the most recent data published by the Colorado Department of Revenues), retail sales increased 9.2% for the state.

Revised population figures from the Census Bureau estimate that Colorado’s population was 4,861,515 in 2007.  This is slightly lower than the State Demography Office’s earlier estimate of 4,909,989.  So far this decade, the state has added more than half a million people.

Colorado is the nation’s 16th healthiest state, according to the United Health Foundation, behind Utah (6th) and Idaho (15th), but ahead of Montana (18th) and Wyoming (19th).  The rankings are based on personal behaviors, community environment, public and health policies and practices of the government, and clinical care received.

The Bloomberg Colorado Index, comprised of the stocks of companies located in the state, fell 7.1% in the first quarter, slightly better than the 9.0% decline in the S&P 500.  Energy companies generally did well, while housing, airlines, telecommunications and technology companies performed poorly.

Colorado law enforcement officials referred about 15,900 names to immigration authorities in 2007, down 40% from a year earlier.  However, referrals grew in Weld and Adams counties.  The Rocky Mountain News reported that relatively few referrals led to deportations.

Colorado’s child poverty rate increased to 15.3% in 2006, up from 13.8% in 2005 and 12.2% in 2001, according to data from the Denver Foundation newsletter.  More than half of the state’s uninsured live in households with annual incomes below 200% of the poverty level.

Employment:

Colorado’s seasonally adjusted unemployment rate was unchanged at 4.4% in March, as the number of unemployed rose for both the month (500) and the year (23,200).  Employment by place of work rose 2.0% in the first quarter. 

Job Changes 2008

Colorado appears to be a likely candidate for a wind energy research and development facility, according to officials at Vesta Wind Systems.  The research campus would employ 70-95 people and would complement Vesta’s new turbine manufacturing facility in Windsor, which could eventually employ 650.

There were 157,200 advanced technology jobs, 8.3% of the Colorado workforce, in 2006 (most recent data available), down 900 from a year earlier.  For the second year, the state ranked in third place in percentage of the workforce in technology jobs, after ranking first for nine consecutive years.  The average salary was $86,500, 198% of the average private sector salary.

Union membership in Colorado rose 15.8% to 191,000 workers in 2007.   Nationally, 12.1% of wage and salary workers are unionized; in Colorado it is 8.7%.

Cost-of-Living: 

The ACCRA cost-of-living index for metro Denver was 103.4% of the national average in 2007.  Greeley was 98.3% of the national average, Fort Collins was 93.9% and Colorado Springs was 93.8%.

Tourism: 

At the end of 2007, there were 7,888 hotel rooms in downtown Denver, with construction of 915 additional rooms in the planning stage.  The Denver hotel occupancy rate was 59.1% in February, according to the Rocky Mountain Lodging Report, with an average room rate of $110.75.  The statewide occupancy rate was 60.9%, down from 61.9% a year earlier.  The highest occupancy rates were in resort communities, where the average rate was $306.76.

Adjusted gross proceeds at Colorado casinos in March were $63.3 million, 14.5 % below a year earlier.   Last month, the Colorado Division of Gaming attributed the two-month decline to the smoking ban, recessionary pressures and a large statewide slot machine progressive payout in February.  AGP is casino revenues minus payouts.  Casinos paid $10.8 million in gaming taxes for the month, down from $12.7 million a year ago.

Approximately 6.3 million tourists visited the Pikes Peak Region in 2007, spending over $1 billion and generating over $19 million in tax receipts.  Garden of the Gods Park was the major attraction, with two million visitors, followed by the U.S. Air Force Academy with 500,000 and Cheyenne Mountain Zoo, with 469,000.

Preliminary data reported 12.6 million skiers on Colorado slopes this season.  However, heavy April snow caused several resorts to extend their season. 

Denver International Airport had a record 3.8 million passengers in February, up 8.9% over February 2007.  DIA is now the fourth busiest airport in U.S.  The Colorado Springs Airport reported a 13.6% traffic increase, the ninth consecutive month of growth.  For the first two months of the year, traffic increased 8.7%.

Housing: 

Permits for new home construction in Colorado fell 21.6% through February, less than the 32.5% national decline.  Single-family permits were off 38.1%, while multifamily permits increased 8.9%.

The Downtown Denver Partnership reported there are 79 projects either under construction or being planned that will add 7,406 new units to the downtown housing market.  The units are evenly divided between rentals and sales.

Sales of existing single-family homes in metro Denver declined 8.9% through the first quarter, as the median price slipped 7.6%.  The inventory was 2.7% above the first quarter of 2007 and 2.3% above February 2008.  Condo/townhouse sales followed a similar pattern, down 18.2% for the quarter, with an 11.4% drop in the median price.  On the positive side, the inventory, although up slightly from February, was 14.5% below the first quarter of 2007.

In Colorado Springs, existing home sales 18.3% in the month of March and are down 8.1% in the first quarter.  The median price declined 3.5% to $193,000.  The inventory of homes on the market rose 4.1% relative to March 2007.  Condo/townhome sales fell 29% in the first quarter.  Colorado Springs economist Fred Crowley reports that two-thirds of El Paso County households can now afford to purchase the median-priced home, as housing affordability has increased dramatically in the last two years.

The Case-Shiller home price index for metro Denver, the broadest measure of what is occurring with home prices, declined 5.2% in January relative to a year earlier.  The overall U.S. index of 20 cities fell 10.7%, led by 19.3% declines in Las Vegas and Miami.

Colorado foreclosures fell 1.4% in March relative to a year earlier, even as foreclosures surged 57.3% nationally.  Colorado ranks fifth in foreclosures nationally by RealtyTrac’s measure (which includes some double counting), with 1 in 339 households in some stage of foreclosure.  The Colorado Springs Public Trustee’s Office reported a record number of foreclosure filings in March.  There have been 1,216 filings year-to-date.

The statewide apartment vacancy rate fell to 8.6% in December, down from 10.4% a year ago.  Colorado Springs, heavily impacted by the movement of troops between Fort Carson and Iraq and Afghanistan, had the highest vacancy rated, 10.8%. 
Sales of existing single-family homes in metro Denver fell 7.6% through February, according to the Denver Board of Realtors.  The median price declined 6.4%, while the inventory of homes for sale was 4.2% above February 2007.  Multifamily sales were down 16.5%, the median price was down 10.6% and the inventory dropped 6.7%.

Nonresidential:   

The value of nonresidential construction contracts in Colorado plunged 34.5% in the first quarter.  Office contracts fell by 50%, while retail contracts declined 12%.  The only significant gains were in manufacturing and education facilities.  Hospital contracts fell 71%.

Frederick Ross reported that industrial real estate rents remained steady and the vacancy rate stayed below 7% in the first quarter, even though the sector experienced its first negative absorption in six quarters.