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Richard Piatt ReportingUtah's economy was so strong in 2005 that the momentum is expected to continue through this year. That's according to the latest Economic Report to the Governor, the annual litmus test of the state's finances.
Here's one, obvious sign that Utah's economy is healthy: new home construction. Housing starts shot up 13 percent between 2004 and 2005, and there's no sign it's slowing down.
That should make it no surprise that the population is growing too. It's 3.2% higher last year, a steady increase from both in state and out of state. Tying it all together is job growth. It's up 3.5 percent,trending up toward levels not seen since the mid-90's.
Governor Huntsman: "We're providing jobs at a rate that is second only to Nevada in the USA right now. And that's higher paying jobs, not just any old job."
Other good news: Tourism is up; in fact skier visits have gone up 30 percent since 2002. Utah exports are also up a lot, most notably in gold and minerals. Mineral exports to Belgium and China manufacturers spiked 450 percent over last year. And according to Utah economists, the trend will continue through this year.
Kelly Matthews, Wells Fargo Bank: "Under normal circumstances, there's no reason to think that '06 can't be a darn solid performance for Utah."
What this means to most people is that it will be easier to fund things like public education, economic development, infrastructure, even tax cuts. The booming economy is leading to a massive surplus this year, totaling a billion dollars.
Steven Kroes, Utah Foundation: "It turns out that voters' top two concerns are really being able to be addressed, that's to the tax revenue generated by this healthy economy."
The challenge from here will be to keep this economic momentum going, and keep Utah's quality of life along the way. It's something the governor says he thinks about all the time, something that was, in fact, his number one campaign promise.
There is also good news in the unemployment rate in Utah. It's expected to fall from 4.7 percent to 4.4 percent this year.
