Colorado’s economy likely to slow further in 2023, but still likely to continue adding jobs, researchers say | Bot To News

Colorado’s economic growth is expected to slow in 2023 as inflation and rising interest rates dampen business activity, although it is not expected to completely stall, according to economists at the University of Colorado Leeds School of Business.

The state is expected to add about 57,000 jobs next year, compared with an increase of more than 120,000 jobs this year, CU economists said in a recently released business outlook report. The two largest sectors – professional and business services and trade, transport and public services – are expected to create a combined 26,700 jobs in 2023, according to the report.

The only sectors predicted to lose jobs next year are construction and financial services, which are highly sensitive to changes in interest rates – especially mortgage rates.

“We see a direct and immediate impact on the financial services sector and the construction sector,” Brian Lewandowski, executive director of CU’s Leeds Research Unit, said in an interview.

Higher mortgage interest rates make it more expensive to buy a home, reducing the demand for new houses. In addition, mortgage companies are being hit hard because homeowners have stopped refinancing their existing loans, which was a booming part of the business during the low interest rate era. Last month, American Financing Corp., known for its commercials featuring former Denver Broncos quarterback Peyton Manning, announced plans to lay off more than half the workforce at its Aurora headquarters.

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