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Show THE OGDEN VALLEY NEWS Page 8 Volume VIII Issue VII July 15, 2003 Utah’s Small Businesses to Benefit From Stronger U.S. GDP Growth and the Latest Interest Rate Cut HIGHLIGHTS The Zions Bank Small Business Index for Utah dipped to 93.0 in June 2003 versus a revised 94.2 in May. Utah’s unemployment rate was estimated at 5.2% in June 2003, down from May’s revised 5.3% rate. Total Utah employment is down an estimated 1,900 jobs during the past 12 months. The Federal Reserve cut its key shortterm interest rate to 1.00% from 1.25%, the lowest level in 45 years. The nation’s unemployment rate was 6.4% in June—up from May’s 6.1% rate—while net U.S. employment declined by 30,000 jobs. A STRONG COMBINATION Financial market players expect U.S. economic growth to pick up speed in 2003’s second half and throughout 2004, providing a boost to the nation’s small businesses. This expected rise in economic activity follows seven consecutive quarters of sub-par economic performance. U.S. economic growth has averaged 2.2% (after inflation, annual rate) since the final quarter of 2001, less than half the typical rebound following recessions in the post-WWII period. As expected, the Federal Reserve trimmed its critical federal funds rate to 1.00% from 1.25% on June 25 at its most recent Federal Open Market Committee private club for members meeting. Financial market players expect the federal funds rate to stay low well into 2004, with the chance of another 0.25% cut in coming months if the economy fails to improve. The Zions Bank Small Business Index for Utah assumes that most of the state’s small businesses are borrowers. As a result, interest rate cuts benefit most small firms. In addition, the level of U.S. economic activity is also an Index component. UTAH EMPLOYMENT The Utah unemployment rate—the most heavily weighted component of the Zions Bank Small Business Index for Utah—was estimated at 5.2% in June 2003, down slightly from May’s revised 5.3% rate. June’s 5.2% rate compared to a jobless rate of 5.9% during June 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 an estimated 1,900 jobs (down 0.2%) over the past 12 months. This drop compares to a revised gain of 800 jobs in the prior yearover-year period. These totals compare to gains averaging 29,500 new jobs annually during the 19942002 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 declined to 93.0 during June 2003 from a revised 94.2 during May 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 vari- ous historical or forecast components as they become available. NATIONAL EMPLOYMENT The U.S. Department of Labor reported the net loss of an estimated 30,000 jobs in June 2003, twice what was expected by Wall Street. In addition, May’s originally reported decline of 17,000 jobs was revised to a loss of 70,000 jobs. he U.S. unemployment rate was a nineyear high of 6.4% in June, up from May’s 6.1% rate. The rate moved higher than expected due in part to a large rise in the labor force. We would suggest the jobless rate is very close to its peak level. The nation’s goods-producing sector lost 40,000 jobs in June, led by the loss of another 56,000 manufacturing jobs. The manufacturing sector has now lost jobs for 35 consecutive months, with more than 2.6 million jobs eliminated since mid-2000. Construction added 16,000 jobs in June, the fourth consecutive monthly rise. Service-providing employment rose by an estimated 10,000 jobs in June. The retail trade sector lost an estimated 13,000 jobs. Temporary jobs rose by 38,000 in June, following May’s 44,000 rise. The rise in temp jobs is a good indicator of gains in permanent employment in coming months. Health care, as usual, also saw employment gains. Zions Bank is Utah’s oldest financial institution, and is the only local bank with a statewide distribution of branches, operating 125 full-service branches throughout Utah. Zions Bank also operates 22 full-service branches in Idaho, and more than 200 ATMs throughout Utah and Idaho. In addition to a wide range of traditional banking services, Zions offers a comprehensive array of investment, mortgage, and insurance services, and has a network of loan origination offices for small businesses nationwide. The company is also a leader in providing electronic banking services, including electronic municipal bond trading. Founded in 1873, Zions has been serving the communities of Utah for 130 years. For more information, call Zions Bank’s Eden office at (801) 745-0835. Jeff Thredgold, Thredgold Economic Associates Economic Consultant to Zions Bank (801) 533-9663 © 2003 Thredgold Economic Associates Layton, Wild Bird Center, Nature/Bird Walk Schedule Join us for a free nature/bird walk. We leave from the Layton, Wild Bird Center, 1860 North 1000 West (across from Barnes & Noble) at 8:00 a.m., every Saturday (unless otherwise noted), rain or shine. Our walks are a great way to introduce children to the world of nature. Bill Fenimore or another local expert leads the walk. We discuss and observe birds, mammals, flowers, butterflies and other nature interests, as we encounter them. The Wild Bird Center “life list” is at 171 different bird species observed during our Nature/Bird Walks, thus far. Helps us discover more new bird species to add to the Wild Bird Center list. July 19 July 26 August 2 August 9 August 16 August 23 August 30 Kaysville East Mountain Wilderness Park Monte Cristo Area Beus Pond North Ogden Pass Ogden River Parkway Ogden Nature Center Farmington By Waterfowl Management Area THINK OF THE FUTURE The Ogden Valley Land Trust a non-profit organization For more information, Call (801) 745-2048 REAL ESTATE BROKER versus REAL ESTATE AGENT You decide who you want on your team. * A Real Estate Broker has additional education, experience & sales performance required by the Utah Division of Real Estate. * A Real Estate Broker can make on the spot decisions without going through a long line of command. * A Real Estate Broker is responsible for their agents actions and has a borader view of the entire transaction. Which means they have a broader view of all legal aspects and are more likely to keep your transactions free from law suits. LIBERTY $438,000 5993 North 2250 East Owner says get it sold now! Paul Judd 814-5667. MLS# 181375 LIBERTY $239,000 3183 East 5400 North. Tons of home for the money. 6BD, 3 BA, FR, Fenced yard. Paul Judd 814-5667. MLS# 368198 NORDIC VALLEY 3790 East 1950 North. Paul Judd 814-5667. MLS# 328840 $185,000 HUNTSVILLE $500,000 6900 E Street. Lake shore property! Has subdivision possibilities. Paul Judd 814-5667. MLS# 335628 LIBERTY $189,900 3450 North 5100 East. Ready to build. Has all utilities. Stream runs through it. Paul Judd 814-5667. MLS# 333889 HUNTSVILLE $93,900 1100 N. Maple Dr. Beautiful secluded canyon homesite w/ terrific views of mountains and valley. Paul Judd 814-5667. MLS# 357031 LIBERTY HUNTSVILLE $39,900 588 Mill Road. Private gated community. Hard to find Causey Estates building lot. Paul Judd 814-5667. MLS# 346635 * A Real Estate Broker has risen to the top of their company & has proven sales per formance and leadership skills. Why settle for someone with less knowledge, education & sales experience to handle your most valuable asset? 5460 East 2200 North Eden, Utah Paul L. Judd Manager/Broker/Owner Great American Realty Multi Million Dollar Producer for past 15+ years 7 4 5 -6 0 0 0 814-5667 Cell phone 745-6000 Office 745-5667 Home Anytime $45,000 3300 N. Hwy 162. Level lot on main road with seasonal stream. Paul Judd 814-5667. MLS#362486 |