DENVER (KDVR) — Inflation is slowing nationally, and state economic signals are a combination of ups and downs.
The Leeds School of Business at the University of Colorado Boulder released its quarterly economic outlook report Thursday. Results are mixed. The state’s economy is in better shape than the nation’s in some ways, but inflation and a sluggish national economy cast a shadow.
Consumer prices jumped 8.5% in July compared with a year earlier, the government said Wednesday, down from a 9.1% year-over-year increase in June. On a monthly basis, prices were unchanged from June to July, the first time that has happened after 25 months of increases.
The Centennial State’s economic fortunes are a mixed bag, depending on the measurement.
In terms of jobs and income levels, Colorado is both at the top of the national charts and to pre-pandemic levels.
Colorado’s labor force participation rate ranked second-highest in the country in June at 69.5%. This is above pre-pandemic levels. The number of people able to work also grew by 2.6% — again, a return to numbers unseen since the COVID-19 pandemic struck.
All those active workers are earning more, at least in dollars that haven’t been adjusted for inflation. The average weekly wage has risen at one of the country’s fastest rates in Colorado, but it’s still beneath inflation levels.
Thanks in part to an influx of wealthy remote workers, Colorado has one of the highest all-around income levels in the country. At $70,764 per person, it has the eight-highest in the country, trailing Maryland, Washington, New Hampshire, New Jersey, California, New York, Connecticut, Massachusetts and the District of Columbia.
Despite the wage growth, Colorado’s economy is slowing along with the country’s. Yearly gross domestic product growth decreased in both the first and second quarters of this year. Nine out of 10 of Colorado’s business leaders said they expect a recession within the next two years.