Springs ‘06 growth was the weakest of state's 7 metro areas

Economic growth in the Colorado Springs area slowed in 2006 to the weakest among Colorado's seven metropolitan areas amid a slowdown in the local housing market and manufacturing and information technology industries, according to figures released Thursday by the U.S. Bureau of Economic Analysis.

The area's economic output grew in 2006 by 4.8 percent from the previous year to $22.3 billion, according to the bureau's figures, its most recent. That is down from an 8.3 percent economic output growth rate in 2005. Economic output is the value of goods and services generated in the local economy and is calculated annually for all of the nation's 363 metropolitan areas.

Slowdowns in the information technology and construction industries were responsible for most of the decline in local economic output. Local housing construction began falling in 2006 and the local information technology industry continued to shed jobs that year. Strong growth in the financial services industry, health care and professional and business services more than offset the declines in information technology and construction.

"Economic growth slowed because our technology manufacturing base is shrinking, and that will get worse when the figures for 2007 and 2008 are released next year and in 2010," said Fred Crowley, senior economist for the Southern Colorado Economic Forum.

"We have lost our manufacturing core and unless we start attracting good-paying primary jobs (workers whose products or services are sold outside the area), this will continue."

The Springs ranked 88th among the nation's metropolitan areas in economic output, a list headed by New York City and its $1.1 trillion output. Houma-Bayou Cane-Thibodaux, La., posted the fastest growth rate at 18.6 percent, in part resulting from its recovery from hurricanes Katrina and Rita. Output declined in Detroit and 54 other metropolitan areas, most in the Great Lakes region, resulting from declines in manufacturing and construction.

Colorado's economic output growth slowed to 3 percent in 2006 from 4.5 percent in the previous year, while U.S. output accelerated to 3.2 percent in 2006 from 2.9 percent in 2005.

Among other metropolitan areas in the state, output grew 6.4 percent in Boulder during 2006, 6.2 percent in Denver, 5.8 percent in Fort Collins, 11.3 percent in Grand Junction amid booming energy industry growth, 6.2 percent in Greeley and 5.7 percent in Pueblo.

The Bureau of Economic Analysis calculates the output data, which it calls gross domestic product, primarily from income statistics compiled by the U.S. Bureau of Labor Statistics. Data for 2007 will be released about a year from now.