Colorado’s economic growth remains steady, though inflation continues to impact the state. The latest data shows a 2.7% inflation rate in June, which is the fastest pace since February, partly influenced by ongoing effects of Trump-era tariffs.
A notable trend is the surge in new business filings, which reached 51,200 in the second quarter of 2025, marking a 19% increase compared to the same period last year. This is the strongest second quarter on record, according to Brian Lewandowski from the Leeds School of Business.
The reasons behind this growth are not entirely clear, but Colorado Secretary of State Jena Griswold suggests a combination of entrepreneurial drive and financial pressures may be contributing factors. Some residents may be starting businesses to supplement income as everyday expenses rise.
Statewide job growth increased by 0.4% last month, the fourth-highest rate recorded. Labor force participation remains strong at 67.7%, ranking sixth nationally.
However, housing costs continue to rise, with home prices increasing by 2.3% year-over-year. Griswold acknowledged the state’s economic resilience but warned that rising costs, including energy and healthcare, could pose challenges ahead.
— news from Axios
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That ‘s still below the national average of 2.7% in June, which marked the swiftest pace since February as Trump-era tariffs began taking a bigger bite out of the economy.
Stunning stat: New business filings statewide surged to 51,200 in the second quarter of 2025, up 19% year-over-year — marking Colorado ‘s strongest second quarter on record, according to Brian Lewandowski with the Leeds School of Business.
The intrigue: It ‘s unclear what ‘s behind the spike or which sectors are seeing the most new ventures. But Colorado Secretary of State Jena Griswold floated a theory: a mix of entrepreneurial spirit and financial pressure.
Some Coloradans may be looking to supplement income “after noticing that their money at the grocery store isn’t going as far as it used to,” Griswold told reporters Monday.
Zoom out: Job growth across Colorado rose to 0.4% last month, the state ‘s fourth-highest rate on record.
Labor force participation held strong at 67.7% — sixth-highest nationally.
Yes, but: Home prices in Colorado continued to climb last month — up 2.3% year-over-year.
What they ‘re saying: The state ‘s economy “has remained resilient,” Griswold said in a statement. “But many Coloradans struggle with the cost of living, and Trump ‘s new law will increase the cost of energy, health care and more,” the Democrat warned, referring to the president ‘s “big, beautiful bill.”
What we ‘re watching: Colorado ‘s resilience could soon face a tougher test.