Colorado’s Economy Update
In Colorado, we love to talk about how much we value our quality of life. As a testament to our priorities, a study recently published by the American Medical Association showed that counties in central Colorado had the highest life expectancy. This makes a lot of sense, considering how over 80% of Coloradans participate in trail-related activities on a regular basis and our backyards are essentially National Parks. Moreover, outdoor activities and state parks generate $34 billion in consumer spending.
As another example, craft beers and quality breweries are a fact of life, and not only contribute to some chill time after a hike, but also add $15 billion annually to the state economy and support 68,000 Colorado jobs.
These industries no doubt make the state an exciting place to live, but additionally, are extremely important to local economies. We hope that you’ll enjoy the summer this year and stay active!
-The Team at OEDIT
STATE ECONOMIC NEWS
Colorado’s Economy Boosted by Young Workers & New Companies
As young professional talent continues to stream into Colorado, state economy benefits. Colorado has diversified its economy from its oil-bound roots, and is establishing itself as a hub for cybersecurity, financial services and advanced engineering. While population growth stretches infrastructure capacity, it is one of the driving factors behind Colorado’s No. 1 ranked economy.
Income Tax Reliance by State Report Find Colorado in Middle
In a report released by the Tax Foundation, Colorado sat near the middle of the pack in terms of reliance on income taxes. Ranked 21st of the 50 states, Colorado relies on personal income taxes for 24.2% of its tax revenue. This is lower than both 11th ranked Utah with 28.0% and 1st ranked Oregon with 40.8%. This indicates a level of economic flexibility that is not pegged to the variations in income tax revenue.
Positive Trends Continue from Monthly Economic Indicators
Metro Denver’s monthly economic measures indicated that Colorado’s economic growth prospects remain healthy. Highlights include the lowest seasonally adjusted unemployment rate in Denver’s history, and over a 12% increase in the consumer Confidence Index.
Colorado Ranked One of the Top States to do Business
Colorado was ranked 13th out of all 50 states by Chief Executive Network. This ranking bumps it up 2 spots from the previous 15th spot it occupied last year. Quoted as a major reason for the improvement was Colorado’s procurement code reforms, which make it easier for businesses to apply for state work positions and improves the grant allocation process.
REGIONAL ECONOMIC NEWS
Denver Among the Few Locations with Inclusive Economic Growth
In a recent report, the Brookings Institute ranked US metropolitan regions on their ability to deliver inclusive economic growth. Inclusive growth considers how job additions affect wages, employment and poverty levels for members of different ethnicities and socio-economic statuses. Denver was among the very few large cities to achieve the highest level of inclusive growth.
A Healthy Colorado Lifestyle Pays Off
According to a report conducted in the JAMA Journal of Medicine, Colorado’s life expectancy trends are among the best in the nation. The three counties with the longest life expectancy in the country (Eagle, Summit, and Pitkin) are all located in Colorado. In addition to these counties, the metropolitan areas of Denver, Colorado Springs, and Boulder exhibit strong positive changes in life expectancy since 1980.
Denver Among the most Economically Diverse Cities
In a new report by Wallethub, Denver ranked 7th among 60 large cities and 39th among 501 total cities in socioeconomic diversity. This ranking assesses the spread of wealth compared to income growth prospects and educational achievement. This ranking fits into an overarching trend, as Denver has shown continuous improvement in diversity levels since 2009.
NATIONAL AND GLOBAL ECONOMIC NEWS
Outdoor Economy is Booming
The Outdoor Industry Association recently released its economic assessment of 2017. The outdoor recreation economy is one of the nation’s strongest sectors, prompting $887 billion consumer spending and generating $125 billion in federal/state revenue. The industry also provides 7.6 million jobs around the country. Outdoor recreation is in a growth phase, and continues to benefit economies around the country.
U.S. as a Global Oil Supplier
With the rise of American shale oil production over the past decade, the U.S. has altered its position to one of the world’s leading exporters of refined petroleum products. In terms of natural gas, the U.S. just became a net exporter for the first time. This report by CSIS discusses the implications of the U.S.’s role in the global petroleum market.
Optimistic Outlook on the US’s Economic Future
A report by The Balance on the future of the U.S. economy describes a world with increasing employment, interest rates, and manufacturing. Interest rates are projected to reach 1.5% in 2017, gradually climbing toward 3.0% by 2020. Optimism permeates the report, however, a cautious eye is turned toward the record heights that the stock market has achieved. As long as widespread optimism doesn’t reach “irrational levels”, recession fears remain low.
Further Growth Expected for the U.S. and Internationally
In the monthly outlooks released by Wells Fargo, U.S. growth prospects are positive despite the disappointing Q1 results. The real estate market outperformed during the first quarter of the year, keeping U.S. growth trending in the right direction. Internationally, the Eurozone and China both experienced high growth, and the relative political stability following Macron’s election in France quiets unrest concerning the future of the EU.
European Growth met with Executive Optimism
In a study of over 2000 European executives, McKinsey reports that both European growth and executive confidence are up. The report indicates, however, a trend of cash hoarding that occurs within the European business community. Many European companies struggle with an unwillingness to invest, a theme perpetrated by uncertainty surrounding the future of the EU. Executive sentiment of the EU remained relatively positive, as over half asserted that the EU has a positive effect on their business, and on business as a whole.