UTAH

Salt Lake Chamber urges business to prepare for slowing economy

Nov 4, 2022, 6:30 PM

As Utah leaders work to accommodate a population boom, some cities are considering Housing and Tran...

FILE: Homes under construction in Herriman are pictured on Tuesday, July 5, 2022 (Scott G Winterton, Deseret News)

(Scott G Winterton, Deseret News)

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 declining home prices, have the chamber cautioning 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 (which together create the economic dashboard) are the decline in home prices and that consumer confidence remains low.

Utah home prices

According to the Chamber’s data, Utah’s median home sales price fell from $535,050 in May to $490,000 in September 2022.

The drop 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 toward the end of the year, the fall this year across the nation was three times what was expected.

One bright side, Bankrate analyst Greg McBride told KSL NewsRadio, is that people in the market to buy a home right now have some leeway.

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

Consumer confidence

The psychological concept of consumer confidence is measured by the opinions and attitudes of consumers. The Salt Lake Chamber reports that, in October, consumer confidence in Utah remained low. The same is true for the nation, the Chamber reported.

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

Over the past year, while gasoline prices went down by nearly 5%, shelter, food, and medical care all increased. 

Recommendations

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

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

“Utah has many advantages to rely upon, such as our low unemployment and entrepreneurial spirit, that can help guide us through a potential downturn.”

Related reading:

 

 

 

 

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Utah

Highway 128 is covered in mud after a severe storm and flooding in the area....

Kyle Remund

Cleanup begins after severe storm in eastern Utah

After a severe storm passed through Grand County, Utah, on Friday, officials are beginning cleanup and mitigation.

6 hours ago

The rescue of an injured hiker at Lisa Falls...

Kyle Remund

Search and Rescue pulls hiker from Lisa Falls

On Friday, search and rescue teams came to the aid of a hiker who had fallen at Lisa Falls in Little Cottonwood Canyon.

7 hours ago

A Clearfield shooting has left one 18-year-old injured and in the hospital....

Kennedy Camarena

Clearfield shooting leaves 18-year-old hospitalized

An 18-year-old male was injured and hospitalized after being shot twice in Clearfield, Utah on Saturday night.

9 hours ago

Officials urge parents to follow Utah's regulations on the use of e-bikes, scooters and ATVs....

Carlysle Price, KSL TV

Officials urge parents to follow e-bike regulations

Police are reminding the public on regulations issued around e-bikes due to concerns surrounding kids with e-bikes, ATV's and golf carts.

10 hours ago

The KSL Greenhouse show talked about plants that grow well in Utah's heat this weakened....

Taun Beddes, KSL Greenhouse show

KSL Greenhouse: Plants that bloom in Utah’s heat

Most people shop for their Utah garden flowers in the spring, which might not bloom well in summer. So, what flowers bloom in the summer?

11 hours ago

Alpine School District's proposed split has been blocked from the November ballot....

Heather Peterson

Alpine School District’s proposed split has been blocked from the November ballot

A bill has been passed that prevents local school board from initiating a process to split the Alpine School District's proposal

13 hours ago

Sponsored Articles

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...

Comcast

Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Salt Lake Chamber urges business to prepare for slowing economy