OCR Text |
Show Page 12 The Ogden Valley news Volume XIV Issue XXI August 15, 2007 Weber County’s Small Business Sector Impacted by Volatile U.S. Economic Growth and Rising Financial Market Anxiety Highlights • The Zions Bank Small Business Index for Utah was 106.5 in July 2007, up from a revised 105.3 in June 2007. • Utah's unemployment rate was estimated at 2.6% in the latest month, up slightly from the prior month's 2.5% rate. Total Utah employment is up an estimated 55,100 jobs during the past 12 months. • Weber County experienced job growth of 3,400 jobs (3.6%) from a year ago. Joblessness registered 2.5%, down from the 3.1% unemployment rate one year ago. • Utah's small business sector is being impacted by inconsistent U.S. economic growth and heightened financial market anxiety tied to credit risk. • The U.S. economy added 92,000 net new jobs in July, roughly one-third below market expectations. The U.S. unemployment rate rose slightly to 4.6%, the highest level since January Volatile Growth with Market Anxiety U.S. GDP (the value of all goods produced and services provided) rose at 3.4% real (inflation adjusted) annual rate during the second quarter, the strongest growth pace in more than a year. The 3.4% growth pace was slightly above market expectations. The solid second quarter pace was an attractive departure from the thricerevised 0.6% growth pace during the first quarter, the worst in five years The second quarter’s 3.4% real annualized growth pace could be as good as it gets in 2007. Prior economic headwinds including high oil prices, prior Federal Reserve monetary tightening, and languishing housing markets remain in play. Today’s reality also includes an emerging global crisis of confidence regarding the use of debt financing whose bottom has yet to be reached. Even so, our long-held view that recession will be avoided remains unchanged. Domestic and global financial market developments of recent weeks have sharply raised anxiety levels about the use of aggressive debt financing, the use of private equity to “do deals,” and the use of extremely complex credit derivative products to “spread the risk” around. Such anxiety is likely to rise further as additional news of weakened or failed hedge funds and postponed financing deals is released. At the same time, numerous mortgage companies that “specialized” in providing sub-prime mortgage loans toAmerican home buyers have failed. Mortgage delinquencies and foreclosures are up sharply. One item of comfort is that the Federal Reserve will provide assistance if market psychology gets progressively worse. The Fed has a history of injecting new money in the economy when “crisis” is underway. They would do so again. U.S. economic growth and the level of short-term interest rates are both components of the Utah Small Business Index. in the prior year-over-year period. Utah added 55,200 jobs in 2006, 43,700 jobs in 2005, and 30,200 jobs in 2004. These totals compare to gains averaging 38,000 new jobs annually during the 1994-2000 period and a net loss of 1,300 jobs in 2001 through 2003. Stronger job gains, leading to better income creation and stronger retail spending, have a positive impact upon Utah’s small businesses...and therefore, the Index. Zions Small Business Index The Zions Bank Small Business Index for Utah was 106.5 during July 2007, up from a revised 105.3 during June 2007. The Index measures business conditions from the viewpoint of the Utah small business owner or manager. A higher Index number is associated with more favorable business “conditions” for Utah’s small businesses. The Index uses 100.0 for calendar year 1997 as its base year. The Index includes revisions to Utah Employment The Utah unemployment rate—the most various historical and new forecast compoheavily weighted component of the Zions nents as they become available. Bank Small Business Index for Utah-was estimated at 2.6% in the latest month, up Local Performance Weber County experienced job growth slightly from the prior month’s 2.5% rate. The 2.6% rate compares to a jobless rate of 3,400 jobs (3.6%) from a year ago. of 2.9% during the same month one year Joblessness registered 2.5%, down from ago. A jobless rate of 2.3% in February the 3.1% unemployment rate one year ranked with the lowest ever recorded in the ago. Cache County employment grew by state and was the lowest in the continental U.S. A higher Utah unemployment rate 1,700 jobs (3.5%) in the latest 12-month is a positive contributor to the Index as it period. The area’s jobless rate was 1.8%, down from the 2.3% rate of one year ago. implies increased access to Utah labor. Davis County payrolls expanded by Utah’s unemployment rate averaged 2.9% in 2006, 4.3% in 2005, 5.1% in 2004, 3,800 jobs (3.7%) in the past year. The 5.7% in 2003 and in 2002, and 4.4% in unemployment rate was 2.2% in the latest 2001. These rates compare to an average month, down from 2.8% one year ago. Salt Lake County employment rose Utah unemployment rate of 3.5% between by 25,800 jobs (4.4%) over the year. 1995 and 1999. Total Utah employment rose by an The county’s unemployment rate fell to estimated 55,100 jobs (up 4.5%) over the 2.2% in the latest month, down from 2.9% past 12 months. The 4.5% rise is one of last year. Utah County employment grew by the strongest annualized Utah gains in more than 10 years, and is the strongest 10,200 jobs (5.8%) over the last 12 months. job growth rate in the nation. This rise The area’s jobless rate was 2.2%, down compares to a revised gain of 53,900 jobs from the 2.8% rate of one year ago Washington County payrolls expanded by 2,400 jobs (4.5%) in the past year. The unemployment rate was 2.3% in the latest month, down from 2.8% one year ago. National Employment The U.S. Department of Labor reported a net gain of 92,000 jobs in July 2007, below the 127,000 consensus view. Reported gains of the two prior months were revised lower by 8,000 jobs. The U.S. unemployment rate was 4.6% in July-the highest level in six monthsand up slightly from the 4.5% rate in the three prior months. March’s 4.4% jobless rate matched that of October 2006 as the lowest in more than five years. The average hourly wage rose 0.3% (six cents) to $17.45 hourly, a rise of 3.9% over the past 12 months. Goods-producing employment declined in July, with a net loss of 12,000 jobs. Construction employment fell by 12,000 positions, while manufacturing lost 2,000 jobs. Service-providing employment led the way in July with a rise of 104,000 net new jobs. The education & health services sector added 39,000 net new positions, while the professional & business services sector added 26,000 jobs. The leisure & hospitality sector added 22,000 net new jobs, while the government sector lost a questionable 28,000 jobs. The U.S. economy added an average of 136,000 net new jobs monthly in 2007’s first seven months, down 28% from the 189,000 average monthly pace during 2006. The 2.26 million rise in net new jobs in 2006 roughly matched gains averaging 2.30 million jobs annually in 2004 and 2005. The August 2007 Zions Bank Small Business Index for Utah will be released on September 11, 2007. Zions Bank is Utah’s oldest financial institution. Founded in 1873, Zions has been serving the communities of Utah for more than 130 years. For more information, contact Zions Bank’s Eden office at 745-0835 or log on to <www.zionsbank.com> Thirty years experienced Suzuki Piano teacher relocated from Arizona is now taking limited registrations for early education through adult Suzuki and traditional piano lessons. For more information or to register for fall classes, FOR ALL YOUR HAULING NEEDS: Gravel, Road Base, Sand, Etc. contact Louise Hill at 745-6524 or candlhill@ovalley.net Paul L. Judd The only name in Valley Real Estate you’ll ever need to know. 814-5667 Cell Under Contract HUGE PRICE REDUCTION! 5354 E. 3850 N. Eden MLS #651600 $595,000 Gorgeous home overlooks Wolf Creek Golf Course & Pineview Reservoir. Features terraced lawns, 7 custom rock walls. Inside has Library, Den, Huge Kitchen & Formal Dining Room. Central vacuum through out. Wired for Internet. Priced to sell. Call Paul L Judd at 801-814-5667 or visit this listing on line at pauljudd.net 6470 N. North Fork Road Liberty $950,000. Contractors own custom built home on 5+ acres overlooking Ogden Valley with lofty scenic vistas looking up into Ben Lomond Peak. Exceptional quality throughout. Master bedroom has fireplace, walk out covered deck double sinks & closets. This is one of finest built homes in the Valley. Priced reduced $150,000. This is a great Dempsy Creek Estate MLS #702622 $278,200 107 acres Mountain Recreation buy! Call Paul L Judd 801-814-5667 property. Located on Dempsy Creek near Lava Hot Springs, Idaho. Property consists of scenic vistas, wooded pine trees, covered hills, a small stream, and gated campground. Call 801-814-5667 Paul L Judd Price Reduced $35,000 Lot 82 Elkhorn MLS #700784 $215,000. Priced to sell! Priced $15,0000 to $25,000 less than lots in same subdivision. Owner says get it sold! Stunning views of Valley & mountains. Located in prestigious Elkhorn Subdivision. Protective covenants in place to protect your investment. Call Paul L Judd 801-814-5667 SOLD! Price Reduced $59,000 2876 E. Shaw Dr. Liberty MLS #695137 $225,000. Wow! Talk about the right setting at an affordable price. Small cabin nestled by the North Fork River. Secluded 1.70 acres with mostly wild life for neighbors. Very private setting. One of the few affordable properties left in the Valley. Call Paul Judd 801-814-5667 or visit this property at pauljudd.net 441 S. 7600 E. Huntsville MLS#639778 $399,900 Huntsville Charmer. Built in 1925 but renovated with log siding, New metal roof & new windows. Front & back covered decks. Custom built in seating. Breakfast nook. Large private back yard. Excellent location. Located in town minutes to shopping, Skiing & water sports. Call Paul Judd 801-814-5667 or see a tour at pauljudd.net SOLD! 3244 E. 5400 N. Liberty MLS#658934 $334,900 Thought you couldn’t afford to live in the valley. Check out this 2,961 sq. ft. home on a large .93 acre lot. This is not a drive by. Once inside you will fall in love with this spacious, cozy comfortable home. Please call 814-5667 or visit me at pauljudd.net. online. 4737 North 3300 East MLS#66854 $289,000 Liberty Free Home! Buy this 2.23 acres with 5 stall Horse Barn. Home is cozy, comfortable & perfect starter home or get away. Small but very nice. Call Paul Judd At 801-8914-567 or visit it on line at pauljudd.net |