Estimated read time: 2-3 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
Keith McCord reporting Despite still-high gasoline prices and a plunge in the stock market this week, Utah financial experts say the economic outlook in our state is still strong.
The encouraging news came during Wells Fargo's monthly cost-of living update. Even though Utah's cost of living went up slightly last month -- .4 percent -- economists see other signs that should make consumers happy!
Bob Hatch, Pres. & CEO Wells Fargo, Utah: "The economy in Utah is very good right now.. I'd give it a 9."
On a 10-point scale!
Utah's job picture has been steadily improving for the past several years. In May of 2004, we had an unemployment rate of 5.3%; Last May, it fell to 4.4%. The latest figure is 3.5%...
Since last year at this time, more than 51,000 new jobs have been created.
Bob Hatch, Pres/CEO Wells Fargo, Utah: "It all starts with a job. If people are employed, they can afford to go out and spend and keep things going. Things are good right now."
Gasoline prices have certainly effected the economy, not just in Utah but nationwide.
Last month, crude oil prices topped $75 a barrel, a record. Today, they're down about 68, and they may continue to fall. Consumer demand has remained fairly steady and hurricane-damaged refineries are coming back on line.
Bob Hatch, Pres/CEO Wells Fargo, Utah: "Refining capacity is now up to 92.7% of capacity, which is the highest it's been since katrina.09 and so the gasoline position looks a lot better."
Regarding the stock market -- it's fluctuating right now. That's not unusual. Every two or three years, the market sees a correction --or drop in value-- of about 10%. Economists say, that's what's occurring now. But, be patient, they say-- the market should improve.
Sterling Jenson Wells Capitol Management: "And the stock market still has some good strong fundamental roots to it, and we're estimating by years end, that we'll have a new high on the stock market."
That's good news for our 401K plans.
Housing prices are still very good. Statewide, home prices have increased in value by 20% over last year. In Washington County, increases are as high as 35%. Wells Fargo economists expect home prices to continue to increase, but not at those levels. Real estate is still a good investment in Utah.
