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Salt Lake Chamber urges businesses to prepare for slowing economy

SALT LAKE CITY – Utah’s unemployment rate is a bright spot on the latest economic dashboard provided by the Salt Lake Chamber of Commerce. However, other factors, including falling home prices, have led the chamber to warn Utah businesses about a slowing economy.

In September, Utah’s unemployment rate was 2.1%. It was the 19th month in a row that the state’s unemployment rate remained below 3.0%.

The troubling indicators according to the Chamber and the Kem C. Gardner Policy Institute (who together create the Economic Scorecard) are falling house prices and the fact that consumer confidence remains low.

House prices in Utah

According to data from the Chamber, the median sale price of Utah homes rose from $535,050 in May to $490,000 in September 2022.

The decline is at least partly attributable to several recent interest rate hikes by the Federal Reserve. While the National Association of Realtors notes that home prices traditionally fall towards the end of the yearthis year’s drop across the country was three times greater than expected.

A silver lining, Bankrate analyst Greg McBride says KSL NewsRadiois that people in the market to buy a home right now have some leeway.

“If you’re currently in the market to buy a home, you have a lot more leeway to do your due diligence. You now have bargaining power that you didn’t have six months ago,” McBride said.

consumer confidence

The psychological concept of consumer confidence is measured by consumer opinions and attitudes. The Salt Lake Chamber reports that in October consumer confidence in Utah remained weak. So is the nation, the House reported.

And inflation, or rising costs, is to blame for this low level of consumer confidence. The Bureau of Labor Statistics reported September 2022 that over the past year, the consumer price index for all urban consumers increased by 8.2%.

Over the past year, while gas prices have fallen nearly 5%, housing, food and medical care have all gone up.

Recommendations

The Chamber recommends that Utah businesses prepare for a deteriorating economy.

“While Utah’s position remains better than most states,” said Derek Miller, president and CEO of the Salt Lake Chamber, “it’s time for business to develop a playbook for a growing economy. slow-down.

“Utah has many advantages to build on, such as our low unemployment rate and our entrepreneurial spirit, which can help us through a potential downturn.”

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Mary Cashion

The author Mary Cashion