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Show The Ogden Valley news Page Volume XVI Issue XIV July 15, 2009 Record Low Short-term Interest Rates Benefit Most of Weber County’s Small Businesses Highlights • The Zions Bank Small Business Index for Utah was 65.7 in June 2009, up slightly from a revised 65.4 in May 2009 • Utah's unemployment rate was estimated at 5.4% in the latest month, up from 5.2% in the prior month. Total Utah employment fell an estimated 41,800 jobs during the past 12 months • Weber County experienced a decrease of 3,100 jobs (-3.2%) from a year ago. Joblessness registered 6.4%, up from the 3.8% unemployment rate one year ago • Short-term interest rates likely to remain at record lows will help Utah's small businesses to weather the ongoing economic storm • The U.S. economy lost an estimated 467,000 net jobs in June, worse than the 365,000 decline expected. Job losses in April and May were revised to show 8,000 fewer positions eliminated. The U.S. unemployment rate rose to a 26-year high of 9.5% Steady at the Wheel The Federal Reserve, this nation’s central bank, has undertaken a series of unprecedented steps during the past 24 months to address the U.S. and global recessions. Many of these actions were nowhere to be found in an operating manual. The Federal Reserve reduced its key shortterm interest rate—the federal funds rate—to a record low target of 0.00% - 0.25% on December 16, 2008. The rate has not changed since that time. Most forecasts suggest that the Fed is likely to keep the rate at its current level for most, if not all, of 2009. In addition, the Fed has provided massive liquidity, various loan guarantees, financial market supports, and other forms of monetary assistance in order to help stabilize the U.S. and global economies and help the U.S. economy return to positive economic growth. The Fed refers to such actions as “quantitative easing.” Most economic forecasters see a return to positive U.S economic growth no later than the end of the year. The Fed’s own forecast sees a similar return to modest growth. Greater attention is now being paid to the process whereby the Fed will reverse certain policies and reduce excess monetary accommodation as a means of minimizing potentially higher inflation pressures beyond 2010. Financial markets refer to such policy reversals as an “exit strategy.” The Small Business Index assumes that most small businesses are net borrowers. As a result, they have benefited from extremely low short-term borrowing costs during 2009, although credit has been more difficult to obtain for many borrowers, both large and small. Such low borrowing costs are likely to continue indefinitely. In addition, performance of the U.S. economy is a component of the Small Business Index. A return to positive, if modest, U.S. economic growth would be a positive contributor to the Index. The Zions Bank Small Business Index for Utah was 65.7 during June 2009, up from a revised 65.4 during May 2009. 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 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 5.4% in the latest month, up from the 5.2% rate of the prior month. The 5.4% rate compares to a 3.3% 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 3.4% during 2008, 2.7% in 2007, 3.0% in 2006, 4.1% 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 fell by an estimated 41,800 jobs (down 3.3%) over the past 12 months. This decrease compares to a revised loss of 38,100 jobs in the prior year-over-year period. Utah added 1,900 jobs in 2008, 49,600 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 19942000 period and a net loss of 1,300 jobs in 2001 through 2003. More recently, job losses, 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 3,100 jobs (-3.2%) from a year ago. Joblessness registered 6.4%, up from the 3.8% unemployment rate one year ago. Davis County payrolls declined by 3,900 jobs (-3.7%) in the past year. The unemployment rate was 4.9% in the latest month, up from 3.1% one year ago. Cache County employment decreased by 1,800 jobs (-3.6%) in the latest 12-month period. The area’s jobless rate was 4.1%, up from the 2.6% rate of one year ago. Salt Lake County employment fell by 20,800 jobs (-3.4%) over the year. The county’s unemployment rate was 5.3% in the latest month, up from 3.2% last year. Utah County employment declined by 8,500 jobs (-4.6%) over the last 12 months. The area’s jobless rate was 4.9%, up from the 3.1% rate of one year ago. Washington County payrolls declined by 1,600 jobs (-3.0%) in the past year. The unemployment rate was 7.0% in the latest month, up from 4.2% one year ago. National Employment The U.S. Department of Labor reported a net loss of 467,000 jobs in June 2009, the 18th monthly decline in a row, and worse than the estimated loss near 365,000 jobs. Previously reported job losses during April and May were revised to show the net loss of 8,000 fewer jobs. The U.S. economy has now lost 6.5 million jobs since the recession began in December 2007, with more than half of the losses during the past six months alone. The U.S. unemployment rate rose to 9.5% in June, the highest in 26 years, versus 9.4% in May. The current 9.5% jobless rate compares to the 5.6% rate of one year ago. The average hourly wage was unchanged at $18.53 hourly, a rise of 2.7% during the past 12 months. Goods-producing employment continued to decline sharply in June, with a net loss of 223,000 jobs. Manufacturing employment fell by 136,000 positions, while construction lost another 79,000 jobs. Service-providing employment also declined in June by 244,000 positions. The professional & business services sector lost 118,000 jobs, while the retail trade sector lost 21,000 jobs in June. The government sector lost 52,000 jobs, while the education & health services sector added 34,000 positions in June. The net decline of nearly 3.1 million jobs during 2008 was the worst year since 1945. The loss of nearly 3.4 million jobs during 2009’s first six months has already surpassed the 2008 total. The net decline of 6.5 million jobs is a painful contrast to the average gain of 1.9 million net new jobs annually during 2005 to 2007. Such job losses are likely to continue in coming months as the U.S. economy struggles with the worst recession in the post-WWII period. Note, however, that most forecasters see the recession concluding before the end of the year, with a consensus view that slightly positive GDP could be achieved in the current quarter. The July 2009 Zions Bank Small Business Index for Utah will be released on August 11, 2009. Founded in 1873, Zions has been serving the communities of Utah for 135 years. Additional information is available at <www.zionsbank.com> Division of Wildlife Resources Developing Comprehensive Management Plan Phil Douglass, DWR Northern Region Conservation Outreach Manager The Division of Wildlife Resources is in the process of developing a Comprehensive Management Plan for Hardware Ranch Wildlife Management Area. Public involvement and awareness is an important part of this planning effort. The culmination of the public involvement plan will be an open house at the ranch later this year. A website has also been set up to begin to make the public aware of issues and goals of this planning process. The website is designed to receive public comment—it can be viewed at <www.hardwareranch.com> A technical review committee comprised of individuals from Cache Valley has been assembled to review the draft outline of the plan. Please contact Ranch Manager Dan Christensen at 435-753-6168 if you have additional questions. BROKEN WATER cont. from page 1 main broke for no apparent reason. A nearby resident stated, “I was outside working when I heard a ‘pop.’ The next thing I know, water is shooting up into the air about 35 feet. The water was shooting above the rooftops.” Neighborhood kids once again took to the street, enjoying a fine spray of water that covered about a 40- to 50-foot radius. And water lines weren’t the only thing breaking during the week. On Wednesday, July 2, a contractor working at the new elementary school, also in Eden, ruptured a natural gas line. The incident closed down Highway 166 until Questar gas employees could arrive and shut off the gas and repair the break. The incident occurred around 1:00 p.m. Neighborhood kids enjoy a water break in the Fairway Oaks Subdivision in Eden on a warm summer day. Easy financing! Updated rambler in Liberty. 5 BD, 2 BA, FR, 2500 sq.ft. Incredible views 1.25 acres, pasture, 5 water shares. Great buy! $250,000 Call Deborah 801-745-1538 Private gated entrance to 5 wooded acres where the dawn’s early light shines on 1 48 x 48 barn & corral. Completely remodeled home w/decks. $625,000 Deborah 801-745-1538 3 car garage, 1 fenced acre, horses welcome! 5 BD (master on main), light, airy kitchen, large laundry mud rm. Ideal family home. Walk to elementary school. $300,000 Deborah 801-745-1538 ed! ce Pri uc Red The Ogden Valley News is looking for Ogden Valley and Ogden Canyon historical biographies, stories, and photos to use in its publication. Please mail, email, or call Shanna at 745-2688 or Jeannie at 745-2879 if you have material you would like to share. Laurie Van Zandt Drastic price reduction!! Located at the edge of the gleaming lake & base of Snowbasin. Designed w/great attention to detail. 4190 sq.ft. 4 BD, 4 BA. $619,000 Deborah 801-745-1538 Be the proud owner of 5 acres of land and a 5 BD home that hails 2 FR, FP, restored classic barn, mature trees and incredible views of mountains. $575,000 Deborah 801-745-1538 Staycation! See the dawn’s early light move across the Valley from this remodeled home in the midst of a recreational paradise. You must see this one! $399,000 Deborah 801-745-1538 (801) 388-8103 d! ce Pri Come see this fantastic Huntsville location. 3.64 acres. 3 shares of Huntsville irrigation water. Owned well. Secluded yard w/outbuilding. Close to all recreation. $425,000 Call Kirk 801-710-9460 ce edu R RIVERFRONT PROPERTY! Odgen Canyon GATED community. Twinhome w/3 BD, 2 BA, 2 FP and walkout FR w/kitchenette. NOW JUST $178,900 Joan @ 801-675-0444 -www.c21eden.com Fantastic cabin in the beautiful and secluded gated community of Causey Estates. 4 BD, 3 BA, on 1.94 acres next to common area. New 75 year Bartile $350,000 Call Kirk 801-710-9460. Combining Creativity & Practicality Unique Landscape Design Project Co-ordination www.theardentgardener.net |