Springs economic recovery won't be as robust as others, Wells Fargo economist says

A moderate recovery is under way in the nation’s economy and job growth should soon follow as consumer confidence continues to improve, though the recovery in Colorado Springs likely will be not as robust, a Wells Fargo economist said Tuesday.

Economic recoveries historically have gained strength 12 to 18 months after beginning, which could mean the recovery that began last summer may accelerate during the second half of this year, Gary Schlossberg, vice president and senior economist for Wells Capital Management, said in a telephone interview. He and Jeff Savage, senior director of investments for Wells Fargo Private Bank, were to speak later to clients and potential customers during a reception at the Garden of the Gods Club.

“There are still some concern that the economy will wind down after the (Obama administration’s) stimulus package wears off, but there is still some stimulus in the pipeline and signs that this recovery is becoming self-sustaining even without further stimulus,” Schlossberg said. “Consumer debt was at a 9-year low at the end of last year and big-ticket spending on things like appliances, furniture and travel all rose at double-digit annualized rates at year’s end.”

The nation’s economy would have generated job growth in February for only the second time in more than two years if not for a series of major snowstorms that kept many workers at home during the week the U.S. Bureau of Labor Statistics surveyed businesses to measure job growth, Schlossberg said. Other early indicators of coming job growth also point toward gains, including growing temporary employment and the average work week expanding, he said.

Colorado wasn’t hit as hard by the recession as the nation in general and already is seeing a recovery emerge, but Colorado Springs was hard hit by job losses in technology that will make it more difficult for the local economy to begin generating jobs, Schlossberg said. Colorado Springs, though, will benefit from the recent influx of troops to Fort Carson and should benefit from increased tourism spending this summer fueled by an improving U.S. economy, he said.
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