Colorado Economy Continues To Grow Amid Persistent Uncertainty | Newswise
Colorado's economy continued to expand through the first half of 2026, with gains in output, employment and personal income despite elevated inflation, slowing labor force growth and continued global uncertainty, according to a new report released today by the University of Colorado Boulder.
Newswise — Aug. 11, 2026—Colorado's economy continued to expand through the first half of 2026, with gains in output, employment and personal income despite elevated inflation, slowing labor force growth and continued global uncertainty, according to a new report released today by the University of Colorado Boulder. The Colorado Business Review: Colorado 2026 Midyear Economic Update, produced by the Business Research Division at the Leeds School of Business examines statewide and national economic trends across major industries, employment, population, trade and other key indicators. The report finds many of the policy uncertainties that shaped 2025 have eased, but new challenges—including geopolitical conflict, higher energy prices and rising inflation—continue to influence the economic outlook. Nationally and in Colorado, employment, output, income and wealth all increased during the first half of 2026. Colorado continues to rank above average on many long-term economic measures, including gross domestic product growth, personal income growth and labor force participation. At the same time, the report notes that slower population growth, a shrinking labor force and elevated inflation are expected to limit near-term growth. “An aging population and slow net migration to Colorado are among the factors resulting in a shrinking labor force,” said Brian Lewandowski, executive director of the Business Research Division. “This is squeezing the supply of labor in Colorado, which will inherently lead to slower job growth in the near term. ”Employment growth has become increasingly concentrated in a handful of industries. Health care and social assistance accounted for more than half of the jobs added through June, while construction showed continued strength despite financing and workforce challenges. Other sectors—including agriculture, manufacturing and parts of government—continued to face pressure from drought, tariffs, workforce shortages and federal workforce reductions. The report notes that while the likelihood of a downside economic scenario has diminished compared with last year, risks remain. The authors point to the possibility of stagflation and continued geopolitical uncertainty while emphasizing that Colorado's long-term economic fundamentals remain comparatively strong. The full Colorado Business Review:Colorado 2026 Midyear Economic Updateis available. ###Find more media resources|Find more story ideas at CU Boulder TodaySign up for Beyond research newsletter