The region’s economy continued to expand at a moderate pace in June and early July, according to the Federal Reserve’s Beige Book report on economic conditions released Wednesday.
The Federal Reserve’s 10th District – which covers Colorado, Kansas, Nebraska and Oklahoma – reported increased consumer spending, stronger natural-resources activity and a tourism season off to a solid start.
But drought conditions and a sluggish home market remained areas of concern.
“Inventories of unsold homes continued to rise across the district, in part due to an increase in foreclosures of low-end homes,” the Fed said.
Home-price appreciation was modest, and real-estate sources predicted that home sales and prices would remain flat.
Other items mentioned in the report:
Commercial real-estate conditions were little changed.
Wages and wholesale prices were facing upward pressures, but retail prices were holding steady.
Manufacturing activity remained solid, although firms were less optimistic about the future.
The Colorado Business Leaders Confidence Index, also out Wednesday, indicated fading confidence and slower economic growth in the second half of the year.
The index’s measure of confidence for the third quarter declined 5.9 points to an overall reading of 54.2. A reading above 50 indicates expectations for continued growth, while one below 50 points to a contraction.
All six indicators in the index measured decreases in expectations for growth.
“While there is a shift in the level of the respondents’ optimism, it appears that the momentum developed over the past 18 months will allow the state to enjoy solid growth for the remainder of the year,” predicted Richard Wobbekind, an economist at the University of Colorado at Boulder who helped put the index together.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
