| OCR Text |
Show May 15 03.qxd 12/7/2021 4:02 PM Page 8 THE OGDEN VALLEY NEWS Page 8 Volume VIII Issue III May 15, 2003 Utah’s Small Businesses Should Benefit from Expected Stronger U.S. Economic Growth Highlights The Zions Bank Small Business Index for Utah dropped to 92.6 in April 2003 versus 96.3 in March. Utah’s unemployment rate was estimated at 5.3% in April 2003, down from March’s revised 5.7% rate. Total Utah employment fell by 3,400 jobs during the past 12 months. U.S. economic growth is expected to improve over the balance of the year. The nation’s unemployment rate was 6.0% in April-up from March’s 5.8% ratewhile net U.S. employment declined by 48,000 jobs. U.S. Economic Growth U.S. economic growth was miserly again in 2003’s first quarter, stumbling forward at a 1.6% real (after inflation) annual rate. The 1.6% growth rate was slightly weaker than most forecasts and largely matched the prior quarter’s weak 1.4% real growth rate. First quarter sluggishness was, in part, tied to “the CNN effect” . . . i.e. millions of people more focused on the potential for, and actuality of, war with Iraq than out supporting the business of business. Severe weather in much of the nation also crimped spending. Consumer spending was sluggish in the January-March period, rising 1.4%, versus a 1.7% rate in the prior quarter. Housing construction activity remained strong in the quarter, rising at a 12% annual rate. Spending on nonresidential structures (think new office buildings and new factories) fell 3.4%, the sixth straight quarterly decline, and a continuation of the worst slump in fixed investment since the late 1920s (CBS.MarketWatch.com). We expect growth prospects to improve. Sharp jumps in the two main measures of consumer confidence/sentiment in recent days, combined with lower energy costs, bode well for stronger growth. While the current quarter may not be much more impressive than that just passed, the second half of the year does look somewhat better. become available. Utah Employment The U.S. Department of Labor reported the net loss of an estimated 48,000 jobs in April 2003, slightly less than expected by Wall Street. Small revisions to prior data saw March lose 353,000 jobs, while February lost 124,000 jobs. The economy has lost 332,000 jobs during the past 12 months. The U.S. unemployment rate was 6.0% in April, up from March’s 5.8% rate, and matching December 2002’s high for this economic cycle. The jobless rate could approach 6.2% in coming months. The nation’s goods-producing sector lost 73,000 jobs in April, led by the loss of another 95,000 manufacturing jobs. The manufacturing sector has now lost jobs for 33 consecutive months, with more than 2.3 million jobs eliminated since mid-2000. Construction added 18,000 jobs in April, while the mining sector added 4,000 jobs. Service-providing employment rose by an estimated 25,000 jobs in April. The retail trade sector lost an estimated 10,000 jobs in The Utah unemployment rate—the most heavily weighted component of the Zions Bank Small Business Index for Utah-was estimated at 5.3% in April 2003, down sharply from March’s revised 5.7% rate. April’s 5.3% rate compared to a jobless rate of 6.3% during April 2002. A lower Utah unemployment rate is a negative contributor to the Index as it implies decreased access to Utah labor. Utah’s unemployment rate averaged 6.1% in 2002 and 4.4% in 2001. By comparison, the 3.2% average during 2000 was one of the lowest annual rates since the early 1950s. These rates compare to an average Utah unemployment rate of 3.5% between 1995 and 1999. Total Utah employment declined by 3,400 jobs (down 0.3%) over the past 12 months. This drop compares to the revised 1,300 jobs lost in the prior year-over-year period. These totals compare to gains averaging 38,300 new jobs annually during the 1994-2000 period. Weak job growth or actual employment declines, leading to lesser income creation and weaker retail spending, has a negative impact upon Utah’s small businesses—and therefore, the Index. The Zions Bank Small Business Index for Utah dropped to 92.6 during April 2003 from a revised 96.3 during March 2003. The Index measures business conditions from the viewpoint of the Utah small business owner or manager. A lower Index number is associated with less favorable business “conditions” for Utah’s small businesses. The Index uses 100.0 for calendar year 1997 as its base year. The Index also includes revisions to various historical or forecast components as they National Employment the month, bringing losses in this sector to 470,000 jobs since June 2001. The transportation and public utilities sector lost 19,000 jobs during the month, with nearly all lost in the airline industry. Government added 32,000 jobs during the month, mostly in local education. Health care added 13,000 jobs. Zions Bank is Utah’s oldest financial institution, and is the only local bank with a statewide distribution of branches, operating 127 full service branches throughout Utah. Zions Bank also operates 23 full service branches in Idaho, and more than 200 ATMs throughout Utah and Idaho. Founded in 1873, Zions has been serving the communities of Utah for nearly 130 years. For more information, contact Zions Bank’s Eden office at (801) 745-0835. Additional information on Zions Bank is available at www.zionsbank.com. Jeff Thredgold Thredgold Economic Associates Economic Consultant to Zions Bank (801) 533-9663 © 2003 Thredgold Economic Associates MEMORIAL DAY CEMETERY SCHEDULE May 26 2003 Each year on Memorial Day, the American Legion Ogden Valley Post 129 holds Military Honors Memorial services at five cemeteries. The schedule is as follows: Liberty Cemetery 3900 N 3500 E Liberty 8:00 a.m. Lower Eden Cemetery 5100 E 2200 N Eden 8:30 a.m. Upper Eden Cemetery 5500 E 2770 N Eden 9:15 a.m. Mountain Green 5100 W Old Hwy Rd Mountain Green 10:30 a.m. Huntsville 5500 E 100 S Huntsville 11:30 a.m. DON’T MISS IT! WOLF CREEK DISCOVERY DAY Friday, May 23 10 a.m. - 7 p.m. Just a few of the activities we’ll be offering include: Remodeled Recreation Center Membership Incentives Tour our Decorated Model Homes Buck-A-Hole Golfing Putting and Chipping Contest Junior Clinic Kids Games: Jousting Obstacle Course Horseshoes, and more!!!! Personal Trainer to Demonstrate Fitness Equipment Call 745-3737 for Details |
