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Show Utah economy remains strong, reports First Security Bank The outlook for Utah's economy in the second half of 1979 is for continued strength in employment, but reduced activity in the consumer sector, said Bill Gibson, Vernal First Security Bank ' Vice Pres. and Manager, quoting from the First Security News Letter. Edited by Dr. Kelly Matthews, vice president and economist for First Security Corporation, the quarterly News Letter will be published this week. According to the report, the impact of the national recession will be moderated in Utah by the continued rapid growth in population and job opportunities. Although no gasoline lines have appeared, the sharply increased in-creased price and inconvenience of 'some weekend closing has resulted in -at least 25 percent reduction in tourist activity in recreation areas. In the first : four months of this year, total gallons of motor fuel refined in Utah were up 2 : percent. . The report continued to emphasize : employment growth for the third quarter. At mid-year, employment has been increasing on the average of 3,000 . per month. Unemployment remained unchanged at 4.5 percent. However, in the months ahead, employment growth is expected to edge downward to 6 percent, while unemployment will probably move toward 5 percent. Cautious consumer spending is expected ex-pected to continue into the third and fourth quarters of this year, predicted the News Letter. Average wage gains have been increasing about 8 percent and when adjusted for inflation, real purchasing power has fallen over the past year. Further, in line with reduced consumer buying, the News Letter noted the rate of growth in commercial bank loan demand also slowed in the second quarter. Residential building permit activity in the third quarter is expected to remain 20 percent below 1978. Mortgage Mor-tgage rates, which rose throughout the second quarter, have probably peaked. The typical conventional mortgage rate reached 11 percent, while the average new home purchase price in the Salt Lake-Ogden area in the first half of 1979 was $B3.000. Utah's mining industry maintained high levels of production in the first half of 1979. Coal production rose 20 percent despite the price structure moderately below a year ago. Conversely, copper prices remain more than 30 percent above last year. |
