Indicators point to recovery, growth in 2012
Regional Economist January 13, 2012
Continuing the message from the last quarterly update of economic data for Northern Colorado, the Northern Colorado Business Report Annual Monthly Growth Rate was strongly positive in September and October. The strongest of the seven indicators were big increases in new single family detached housing construction, construction in general and a large reduction in the number of bankruptcies filed. A reduction in bankruptcies is positive for the economy because it reduces the drag they cause on consumer spending and business operations.
The Index of Economic Growth in Northern Colorado was almost as high in August as it was in July. September and October numbers were well above the same months in 2010 but below summer numbers. The trend line has turned up, signaling that the bottom has been set for the Great Recession in Northern Colorado. The Growth Index is more than double its size in the base year of 1991 but one-third less than in 2004/2005.
The U.S. economy is in a holding pattern, not shrinking but not creating enough jobs to lower the unemployment