Colorado’s economy “growing-but-slowing,” economic report shows

Denver, May 5, 2023 - Colorado notched a record-high number of new entity filings in the first quarter 2023, according to a report released today by the University of Colorado Boulder and Colorado Secretary of State Jena Griswold.

The Quarterly Business and Economic Indicators report is prepared by the Leeds Business Research Division (BRD) at CU Boulder in conjunction with the Colorado Secretary of State’s Office.

The latest report for the first quarter of 2023 shows that Colorado recorded 55,787 new entity filings posting the largest quarter in the report’s history. Filings increased year-over-year by 27.6% and 14.3% quarter-over-quarter.

It's likely the Colorado Business Fee Relief act that reduced limited liability filing fees to $1 contributed to the surge in filings.

While dissolutions reached a record-high 13,999 in Q1, the year-over-year increase (9.1%) was a decrease from the previous quarter (17%). The spike in dissolutions during the last recession occurred in Q2 2011, after the official end of the recession.

Existing renewals remained positive, increasing 1.2% (194,062 renewals) in Q1 year-over-year and 13.3% quarter-over-quarter.

Inflation continued to improve in the first quarter. The Consumer Price Index increased 5.7% year-over-year in the Denver-Aurora-Lakewood metropolitan area (MSA), just above the national rate of 5%.

“Colorado’s continued growth and record new entity filings shows that Colorado remains a great place to be in business,” said Secretary of State Jena Griswold.

Evidence is emerging that Colorado’s economy is growing but slowing. Colorado’s March 2023 employment increased 33,400 (1.2%) year-over-year, second slowest nationally. The largest annual percent increases came from mining and logging, leisure and hospitality and professional and business services.

The state’s labor force participation rate ranked fourth highest nationally in March at 68.3%. The labor force grew 0.7% year-over-year, and Colorado’s per capita personal income ranked eighth at $75,206.

The housing market has also slowed down in Colorado. While home prices increased 9% year-over-year in Q1, the state’s housing prices peaked in Q2 2022. The home price index decreased for six of Colorado’s seven MSAs, with only the Pueblo region recording growth (0.5%). The Colorado Springs MSA recorded the sharpest decline at -3.8%.

Colorado’s real gross domestic product (GDP) continues to outpace the nation. The state’s output grew at an annualized rate of 2.7% from Q3 to Q4 (22nd nationally) and 1.7% year-over-year (eighth highest).

You can find monthly information on key economic statistics and trends that impact the state on the Colorado Business and Economic Indicator Dashboard, launched by the Colorado Secretary of State's office in conjunction with BRD.