Colorado’s economy ended 2005 on a strong note but will likely slow this year as higher interest rates and higher energy costs squeeze consumers, according to the Mountain States Business Conditions Survey released Tuesday from Creighton University in Omaha.
Colorado’s survey reading in December was its strongest since July, rising to 62.9 from November’s 54.6. An index reading above 50 indicates an expanding economy, while one below 50 indicates a contraction.
“While job growth in Colorado is trending downward, it remains slightly positive and higher than U.S. job growth,” said Creighton economist Ernie Goss, who compiled the survey.
Goss predicts Colorado’s economy won’t grow as rapidly the first half of this year as it did the first half of last year. Job growth in the state should fall to 1.6 percent, lower than the 2.3 percent growth rate University of Colorado economists predict.
One reason is continued weakness in three key Colorado industries: beverages, telecommunications and food processing.
Telecom employment in the state will not recover until the industry goes through additional consolidations and bankruptcies, a process that will stretch beyond 2006, Goss said.
The beverage industry continues to struggle nationally as Americans drink less beer.
Food processing in the state should pick up as Asian consumers begin buying more U.S. beef. But the recovery will be slower than most expect, he said.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
