Mid-year economic forecast: utah is primed for growth--as long as the national economy holds steady.

• Author: Roberts, Julie
• Position: Special Report

Utah residents know there are a lot of good things about living here--such as the beautiful mountains, low crime rates and family-friendly lifestyle. But there's something else about Utah that sets it apart from other places: our robust economy. While most states are still reeling from the effects of the Great Recession, Utah's economy is thriving. In fact, the Utah Department of Workforce Services reported that Utah's unemployment rate dropped to 3.6 percent in May 2014. Compare that to the national level, which was at 6.3 percent in May.

Utah's good employment numbers are particularly interesting because unlike states such as North Dakota and South Dakota, which are experiencing an energy boom, Utah is simply going about its usual business cycle. This isn't a surprise to Mark Vitner, senior economist and managing director at Wells Fargo, who says "Utah stands out in the U.S. for its strong economy."

But will that good fortune continue for our state? Here are the important factors to consider in evaluating Utah's economic forecast.

Diverse and Resilient Economy

According to Steve Kroes, president of the Utah Foundation, "Utah has one of the most diverse economies in the nation." Unlike some states that rely heavily on one particular industry for employment and investment opportunities, Utah has a wide range of profitable sectors. In fact, according to DWS, 10 private-sector industries posted net job increases in March 2014. Areas of industry that reported job growth included trade, transportation and utilities (8,400 jobs) and government (4,500 jobs).

The leisure and hospitality industry also experienced significant gains with 6,500 new jobs. This area of business can be especially lucrative for states, says Vitner. "The tourism industry attracts a high portion of wealthier consumers, which is what you ware

Utah also has economic strengths in other areas, including the technology industry. In fact, Utah is increasingly becoming known as Silicon Slopes, as more and more information technology and software development firms choose to operate in the Beehive State. "A lot of tech firms like it here Vitner says. "People like it because of the outdoor life. Also, Utah has a reputation for clean living."

On the residential real estate front, the reports are mixed. According to an April report published in The Salt Lake Tribune, "Home sales along the Wasatch Front are continuing to slow slightly as the effects of sizeable price gains and rising...