Colorado business growth continues to slow down, indicating a continued slowdown in job growth in 2020, according to a CU Boulder report Colorado Secretary of State Jena Griswold released.
The Quarterly Business and Economic Indicators report is prepared by the Leeds Business Research Division (BRD) at CU Boulder. The latest report shows 28,371 new corporations, nonprofits and other entities filed initial documents with the secretary of state’s office in the final quarter of 2019. That marks a 0.4% decline from the fourth quarter of 2018.
Existing entity filings declined 1.1% year-over-year, with 132,754 entities filing renewals.
“While growth has slowed slightly the last two quarters, Colorado’s economy is still strong,” said Secretary Jena Griswold. "With optimism from business leaders on the rise, indications point to Colorado’s economy staying strong in 2020."
Fourth quarter dissolution filings increased 4.9% from the fourth quarter of 2018. They jumped 20.4% from the previous quarter.
Entities in good standing increased 6.6% from the previous year’s fourth quarter.
Wrapping up Colorado’s economy in 2019
“The slowing growth in new entity filings is consistent with the slower growth observed in both firms and employment in the state,” said Richard Wobbekind, executive director of BRD.
Colorado’s economy is still growing, with Colorado adding 56,600 jobs from Dec. 2018 to Nov. 2019. This latest report wages about $2,100 higher than the national average.
However, there are other signs of slowing.
Building permits decreased 7.4% annually across Colorado, according to the report. The value of new residential construction decreased 3.8% annually.
Leeds BRD cited mortgage interest rates for the decline in permits, as well as a slight decline in people moving to Colorado.
Business confidence rebounded heading into 2020, according to the latest Leeds Business Confidence Index (LBCI). The LBCI had slipped into negative territory at the end of 2019.