Denver's Economy Provides Mixed Message

Pointing to possible economic stabilization, the unemployment rate in the Denver metro areadeclined in May to 5.5%, down from 6.1% in April, andemployment increased by 12,600 positions during the same period.

On the other hand, home foreclosures in the metro have increased 36.9% compared to the same period in 2002, underscoring continued economic uncertainty.

The chamber's July report shows that nine indicators moved in a positive direction, down from 10 in June. Those nine indicators are distributed throughout four categories of data featured in the monthly report, which include labor and employment, the consumer sector, residential real estate, and commercial real estate.

"The unemployment and job growth figures are encouraging, however our economy will likely remain stagnant as many key economic drivers attempt to stabilize," says Denver Metro Chamber consulting economist Patricia Silverstein, principal of Development Research Partners, which compiles the monthly report.

"While the signs are still mixed in the economy, within the businesscommunity there is a rising tide of enthusiasm surrounding mayor-electHickenlooper's focus on economic development and his commitment to statewide collaboration, as evidenced by the joint economic development trip to California that he and Gov. Owens will take in early August," says Tom Clark, EVP of Economic Development for the Denver Metro Chamber.

Bad news for the office market, however, is that only 15% of the companies surveyed expect to add workers during the third quarter of 2003, down from 20% last quarter. The percent of companies expecting to reduce their employment level held steady at 20% this quarter while 46% report no change in the number of workers. On an industrybasis, new job opportunities appear best in services.

The report notes that total retail sales fell from March to April in a typical seasonal pattern. Retail spending for the first four months of the year remains 1.6% below the same period last year. Still, this represents an increase over last month's figures that revealed a year-to-date decline of 2.2%.