Secretary Griswold Releases Economic Indicators Report for Third Quarter 2019
Today, the Colorado Secretary of State, in partnership with the University of Colorado Leeds School of Business, released the quarterly indicators report for the third quarter of 2019. The report shows that Colorado’s economy is slowing but continues to perform well with less unemployment, rapid job growth, and wage growth that is outpacing the national average.
This report shows the relationship between new business filings, new business formation, and employment growth. The increase in business filings indicate continued job growth in the state into 2020. But, in the third quarter of 2019, new entity filings grew a modest .3% year-over-year, showing the slowest growth in 4 years.
“Colorado’s economy continues to lead the nation in wage growth and employment, though growth is showing signs of slowing,” said Secretary Jena Griswold. “I am happy to see that Colorado’s economy should grow through the end of the year and into 2020, even as business leaders are more pessimistic with economic uncertainty.”
The Business Research Division at the University of Colorado Leeds School of Business compiles the report using data from the Secretary of State’s central business registry. The report looks at a variety of factors, such as energy costs, the labor market, and inflation.
“Although slowing is the word of the day, Colorado still has one of the stronger economies in the U.S. with year over year employment growth at 2%,” said Richard Wobbekind, executive director of the Leeds Business Research Division.
Trade tensions are impacting Colorado exports. As of August, Colorado’s total goods exports for the year decreased 4.9% year-over-year, compared to 3.4% growth in 2018. Colorado’s top three trade export partners are Canada, Mexico, and China.
Employment growth should continue through the end of this year and into 2020. Colorado wage growth continues to outpace national wage growth. Around the state, the Colorado Springs, Grand Junction and Greeley areas added the most jobs at the fasted pace. And year-over-year, Colorado’s wages increased 3.3% compared to 3% nationally.
During the third quarter, 31,105 new business entities filed with the Secretary of State, representing a 0.3% increase over the same period in 2018. Over the past 12 months, 127,192 new business entities filed with the state, a growth of 1.5%. From Q2 2019 to Q3 2019, the number of entities in good standing in the state increased by 1.2%, and grew 3.4% over Q3 2018.
According to the latest Leeds Business Confidence Index, business leaders’ confidence decreased from the second quarter and from 2018. Business owners are pessimistic about the national economy, hiring, capital expenditure, and profits.