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Show The Ogden Valley news Page Volume XV Issue XXIV December 1, 200 Weber County’s Small Businesses Would Benefit From One Final Interest Rate Cut Highlights: •The Zions Bank Small Business Index for Utah was 84.0 in October 2008, down from a revised 85.4 in September 2008. •Utah's unemployment rate was estimated at 3.5% in the latest month, down from the prior month's 3.7% rate. Total Utah employment is up an estimated 1,800 jobs during the past 12 months. •Weber County experienced a decrease of 900 jobs (-0.9%) from a year ago. Joblessness registered 4.0%, up from the 3.3% unemployment rate one year ago. •Severe U.S. economic weakness, combined with declining inflation pressures, suggest the Federal Reserve could soon cut its key interest rate to its lowest level on record, thereby benefiting many of Utah's small businesses. •The U.S. economy lost an estimated 240,000 net jobs in October, worse than expected. In addition, job losses in August and September were revised higher by 179,000 jobs. The U.S. unemployment rate jumped to a 14-year high of 6.5%. Ten and Out? The Federal Reserve—this nation’s central bank—reduced its key federal funds target rate on October 29 for the ninth time in the current cycle of economic weakness. The rate was trimmed to 1.00% from 1.50%, matching the level between June 2003 and June 2004, and also matching the lowest level in 50 years. The October 29 cut was on the heels of a similar 0.50% cut on October 8. Both rate reductions were intended to help address the most severe domestic and global financial crisis since the Great Depression. Greater-than-expected job losses during October, combined with major upward revisions to previously announced job losses in August and September, have heightened the odds that a tenth and perhaps final rate cut could occur on or before December 16, 2008, the next scheduled meeting of the Fed’s Open Market Committee (FOMC). Interest rate cuts have picked up speed around the globe in recent weeks, with substantial cuts by central banks in Europe, the U.K., Japan, China, South Korea, and Australia. Such reductions, with more to come, were made in response to a rising recognition that economic recession in the U.S. is likely to be matched by recessions or substantial economic slowing in these same nations. Another rate cut by the Federal Reserve, as with the prior cut on October 29, will do little to address the U.S. economic recession. The primary issue remains inadequate access to credit, rather than the price (the interest rate) of such credit. Nevertheless, such cuts do have a positive psychological impact, as well as having an impact upon reducing financing costs for millions of American businesses. The Small Business Index makes the assumption that most of Utah’s small businesses are borrowers, with interest rate cuts boosting the Index. However, greater evidence of U.S. economic distress, including the decline in U.S. GDP during 2008’s third quarter, pulls the Index lower. The Zions Bank Small Business Index for Utah was 84.0 during October 2008, down from a revised 85.4 during September 2008. 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 includes revisions to various historical and new forecast components as they become available. Utah Employment The Utah unemployment rate—the most heavily weighted component of the Zions Bank Small Business Index for Utah—was estimated at 3.5% in the latest month, down from the 3.7% rate of the prior month. The 3.5% rate compares to a 2.8% rate during the same month one year ago. A higher Utah unemployment rate is a positive contributor to the Index as it implies increased access to Utah labor. Utah’s unemployment rate averaged 2.7% in 2007, 3.0% in 2006, 4.2% in 2005, and 4.9% during the 2000-2004 period. These rates compare to an average Utah unemployment rate of 3.5% between 1995 and 1999. Total Utah employment rose by an estimated 1,800 jobs (up 0.1%) over the past 12 months. This rise compares to a revised gain of 1,300 jobs in the prior year-over-year period. The 0.1% rise marks the lowest 12-month employment growth rate since the July 2002 to July 2003 period. Utah added 47,800 jobs in 2007, 55,700 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. More recently, weaker job gains, leading to lesser income creation and softer retail spending, have a negative impact upon Utah’s small businesses . . . and therefore, the Index. Local Performance Weber County experienced a decrease of 900 jobs (-0.9%) from a year ago. Joblessness INTEREST RATE cont. on page 13 Gage Froerer & Assoc. ( 01)745-4221 Eden Office 2405 Highway 15 Cindy Peggy Joan Deborah ce! Pri w e N Rustic chic home. 3 BD, 3 BA, 5+ acre horse property. Mountain, lake, and valley views. Lg. heated gar., sep. lg. shop. $599,000 Call Joan @ 801675-0444 or Cindy @ 801-644-6607. A little piece of heaven tucked away in the trees on a secluded acre. All season access. 4 BD, 2 BA, 2000 sq.ft. log home. RV parking-covered boat storage. $3 9,000 Deborah 801-745-1538 Radford Estates 4 BD log home. Professionally landscaped. Awesome views of Pineview and Ogden Valley from kitchen, master, LR, deck and patio. $ 49,000 Joan @ 801-675-0444 Old Snowbasin Road. Surrounded w/9+ wooded acres and views of Pineview & Ogden Valley. 3 BD, 3 BA, hardwood floors, 2 FP, office/den, 2 car gar. $1,650,000 Joan @ 801-675-0444 ce! Pri w e N Check out this beautiful Rock & Stucco 4 bedroom home in Eden with awesome landscaping. Immaculate home with seasonal stream and lots of privacy. $495,000 Joan @ 801-675-0444 Highlights of this distinctive mtn. cabin are views to die for. 4 BD, 3 BA , hardwood flrs, FP, new carpeting. Extraordinary master suite on 2 acres. $399,900 Call Deborah 801-745-1538 Pr w e N HUGE PRICE REDUCTION! Feel like Goldilocks sleeping on new luxury mattresses in this redecorated 2 BD condo on the golf course. Fully furnished & in rental pool. $194,900 Deborah 801-745-1538 shOrt sales ice! Snowbasin Lot Located just west of Eagle Peak w/beautiful views of the Valley and lake. 5.88 acre bldg lot with well already drilled. $695,000 Joan @ 801-675-0444 Updated rambler w/360 views! Rock terraced landscaping. Backyard incl. fenced pasture, full sprinklers system, 5 water shares, 2 barns 4 BD, 2 BA 1.25 acre, 2542 sq.ft. $270,000 Call Deborah 801-745-1538 Nestled in a tree laden lot this home boasts privacy,sweeping views and architectural elements that set it apart. 4 BD, 3 BA, basement workshop to die for! $409,000 Deborah 801-745-1538 ! se Lea ion Opt Nordic house tucked away in the trees. Min. to Wolf Mtn. ski resort. 3 BD, 2 FR w/FP and huge deck to take in the beautiful views of the Valley. $295,000 Joan @ 801-675-0444 Gated Odgen Canyon community darling twinhome with 3 BD, 2 BA, 2 woodburning fireplaces and walkout family room with kitchenette. $203,000 Joan @ 801-675-0444 g! $ 330,000 Patio Springs $ 270,000 Liberty New tin Lis lOts Nordic Valley Nordic Valley Durfee Creek Liberty The Preserve Sheep Creek $170,000 1 acre $175,000 1 acre $310,000-$350,000 1 acre+ $520,000 4.71 acres $110,000 .55 acre $ 94,900 Deborah Hegg 801-745-1538 or Joan 801-675-0444 Located at the base of Powder MT. on a knoll that affords extreme views of the valley. Furnished or not-6 theme BD-3 full BA. lg. FR, 1 acre. Move right in! $450,000 Deborah 801-745-1538 Liberty 3 bedroom, 2 bath brick home on a 5 acre lot with seasonal river. Great mountain views. MLS # 842991 $495,000 Joan @ 801-675-0444 |