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 Information in the story may be outdated or superseded by additional information.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.
High gas prices and a slowing economy are showing up in various ways in Utah.
For a lot of people, it's a matter of doing without a few things. But some people just aren't paying their bills.
As major economic drivers, housing construction and real estate can be indicators of how Utah's overall economy is doing. Because of lagging new home sales this year, some investors who are unable to flip homes quickly are not paying contractors and subcontractors for work already done.
The people who sell the raw materials hear about it happening to their customers all the time. They say it's especially bad now.
Dennis Gardner of Utah Pro-Build said, "When you look at the building permits along the Wasatch Front, it's down 60 percent. When you take that much business out of the economy in a particular business segment, it drastically affects what you can do."
The effects are perhaps a bit more hidden in other businesses. Some restaurants are reporting drops in business; others report people aren't ordering dessert or drinks in order to cut back.
High gas prices are affecting people's vacation plans.
The price of vegetables is up. Packaging for some products is smaller but the price is still the same.
Some people are cutting back on "extras." Business is slow at some furniture stores, for decorators and remodelers. Utilities are requesting rate hikes and using higher prices to make their case.
Another effect: A shortage of asphalt. The price of oil is limiting the by-product used to make the road surface.
Utah Department of Transportation Construction and Materials Director Kris Peterson explained, "Some projects may get delayed. Costs are also increasing on projects, so they'll be eating into their budget contingencies. So they'll need to see if they need to cut back on the scope of the project or cut back on similar scopes."
Inflation creeps up on all of us. But these days, it seems a lot easier to notice.
E-mail: rpiatt@ksl.com
