Colorado’s economy may be slowing, but it’s not a time to panic (Opinion)

The headlines are loud again full of warnings about economic slowdown falling business confidence housing anxiety tariff threats and more It s no surprise that a large number of in Colorado are feeling jittery tempted to make substantial changes to their investments and business plans But the wiser move right now may be to pause Not freeze Not panic Just pause After weeks of examining economic reports reviewing business filings and speaking with executives economists and residents across the state a clear picture has emerged The dominant narrative of decline pessimism and retreat doesn t align with what s veritably happening on the ground This is a moment where noise is drowning out signals and people s instinct to avoid liability often kicks in before we ve had a chance to consider the facts Yes confidence among Colorado business leaders has dropped According to an index from the University of Colorado Boulder it s now at its third-lowest point in over two decades But confidence is not a measure of economic reality it s a feeling and feelings are not facts Ask someone how they feel about the business activity and you re just as likely to hear their views on the political weather Surveys may register anxiety but actual behavior of both consumers and businesses suggests a more measured outlook Spending remains resilient In the first quarter of credit card usage in Colorado rose from a year earlier ranking the state th nationwide according to the Federal Reserve Household finances are solid too Mortgage payments as a share of income are near record lows thanks largely to widespread refinancing during the pandemic And in the Denver metro area home sellers received at least of their listing prices in the first four months of the year according to the Colorado Association of Realtors Consumers in short have a cushion They also have options The same is true for businesses Across sectors companies have slimmed down increased efficiency and developed operational models with built-in flexibility These are not firms bracing for collapse they are lean adaptable and capable of making strategic shifts without panic This brings us to a practical but often overlooked principle don t confuse activity with progress In an uncertain market the urge to do something can be misleading Movement for its own sake doesn t invariably lead in the right direction The better approach is balanced and deliberate Don t overreact and don t underreact Don t chase headlines or pivot every time the narrative shifts Instead focus on the fundamentals of your business your household and your local economic system Context matters This is not It s not even Over the past years the U S has endured only two major recessions with deep lasting effects Majority other downturns have been noisy but ultimately fleeting Currently s conditions while uneasy remain fundamentally sound Colorado banks are well-capitalized Credit quality is high Liquidity is strong Businesses that qualified for loans a year ago still can and banks facing a lull in big-ticket deals like mergers expansions and large-scale hiring are often competing more aggressively for new lending opportunities That s not instability That s discipline Even amid caution optimism persists In the first quarter of this year new business filings in Colorado surged People exit businesses for all sorts of reasons but they start them for only one They believe there s a future worth building So why all the gloom Part of it is psychological Colorado has spent much of the past two decades as a top-performing state leading in job expansion population gains and innovation That high-flyer status shaped expectations Now the pace has slowed Denver continues to grow but not as rapidly The wave of young professionals has eased replaced in part by older adults relocating to be near children and grandchildren It s a different type of advance quieter and less headline-friendly To particular that shift may feel like a letdown In reality it s a necessary recalibration There s a silver lining especially in housing Years of intense demand led to a boom in multifamily construction That supply has now overtaken demand bringing down rents across the Denver metro area According to CBRE average rents fell year-over-year in the first quarter of That may be unwelcome news for specific developers but it s an essential correction for a city where affordability had become a major barrier Related Articles Trump to put tariffs on Japan and South Korea new import taxes on five other nations Has Trump era made immigrants lives more challenging Longtime Coloradans and more modern arrivals weigh in Colorado officers blast Republican Senate tax bill as final passage and Medicaid cuts loom Stocks gain ground and put Wall Street on a path for all-time highs Deal with Beijing will speed China s export of minerals to the US treasury secretary says If you re a business owner this is the time to stay grounded Let strategy be your compass Adjust your tactics when needed but don t abandon the fundamentals If you decide to pull back do it based on the evidence that directly impacts your operation and not just what s being commented in the broader conversation If you re a resident particularly one concerned about jobs or housing take a wider view Colorado s economic strengths its skilled workforce its well-managed banks and its enduring lifestyle of entrepreneurship remain intact The real danger isn t recession it s overreaction It s mistaking a slowdown for a freefall and fear for fact Colorado s commercial sector may not be sprinting anymore But it s still moving still breathing still building what s next Joe Nimmons is the Colorado region president of Huntington Bank Ian Wyatt is the director of economics at Huntington Bank Sign up for Sound Off to get a weekly roundup of our columns editorials and more To send a letter to the editor about this article submit online or check out our guidelines for how to submit 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