1. THE UTAH ECONOMY - 2011 Presentation by James Wood Bureau of Economic and Business Research University of Utah November 2011

2. Forecast for Utah’s Major Economic Indicators Source: Governor’s Office of Planning and Budget. Category20102011Percent Change Nonfarm Emp. (000)1,180.01,209.22.45% Unemp. Rate7.6%8.0%NA Total Wages (billion)$45.7$48.15.3% Average Pay$38,665$39,5812.4% Net Migration (000)1.03.5NA New Auto/Truck (000)69.176.210.2% Residential Units9,3008,700-6.5% Residential Value (billion)$1.7$1.74+2.4% NonRes. Value (million)$925$1,10018.9% Retail Sales (billion)$25.2$26.34.4%

3. Year Over Percent Chg. in Utah’s Nonfarm Employment % Change Wyoming3.03 Utah2.45 Oregon1.46 Washington1.36 Montana1.18 California1.16 Idaho0.92 Arizona0.50 Colorado0.73 New Mexico0.43 Nevada-0.31

4. Employment Drivers in Utah 2002-1010 SectorIncrease Health Care37,289 Local Government17,204 Professional, Scientific and Tech. Services.15,045 Lodging & Food11,071 Private Education (BYU, etc)8,199

5. Nonfarm Employment in Utah

6. Beginning Employment Ending Employment Numeric Change Average Annual Growth Rate 1950-1960189,153263,30774,1543.4% 1960-1970263,307357,43594,1283.1% 1970-1980357,435551,889194,4544.4% 1980-1990551,889723,629171,7402.7% 1990-2000723,6291,074,879351,2504.0% 2000-20101,074,8791,181,337106,4580.95% Source: Utah Department of Workforce Services. UTAH EMPLOYMENT GROWTH BY DECADE Source: Utah Department of Workforce Services.

7. HOUSING PROBLEM: VANISHING DEMAND Household Growth Slows. Larger households than expected. Deep Job Loss Due to Great Recession. Income & Job Uncertainty Credit Troubles. Credit worthiness, foreclosures & short sales Middle Class Struggles – occupy Utah, gini index; state (51), metro (52), place (WVC,WJ)

8. Foreclosure Filings in Utah (Source: Mortgage Bankers Association)

9. 2011 First & Second Quarter Short Sales & REO Sales as % of Total SF Sales. Source: WFRMLS. County Short Sales & REO 1 st Qtr % SS & REO Short Sales & REO 2 nd Qtr % SS & REO Davis18336%19125% Salt Lake68738%79331% Utah42346%45140% Weber16538%15325% Total1,45840%1,58731%

10. CHANGE IN MEDIAN SALES PRICE OF EXISTING HOME Peak Value Peak Qtr 2nd Qtr 2011 % Chg. from Peak FHFA State (Index) 324.3 Qtr 3 rd 2007 240.5-25.8% NAR Was.Front $246,6003 rd Qtr 2007 $199,200-19.2% WFRMLS SL County $256,0003 rd Qtr 2007 $201,500-21.3%

11. Change in Renters and Rental Inventory in Utah. % Chg Renters Additional Renters New Apts. 1970-198032.0%29,265NA 1980-199042.0%50,634NA 1990-200016.6%28,471NA 2000-201030%59,82121,619 So. SL (2000-2010) 6.9%340166

12. MAINTAIN PERSPECTIVE 1.2 million people going to work everyday. $95 billion in personal income. $26 billion in retail sales. 40,000 increase in population. History of high growth – labor, demographics and transportation.