Colorado’s economy continues to grow, albeit slowly, and continues to “avert recession.”

That’s according to the latest ColoradoCast Q2 economic forecast report from the Colorado Futures Center at Colorado State University.

“In the months of March and April, the actual economic growth exceeded the ColoradoCast and the forecast for the subsequent months is for largely positive, albeit weak, growth in the state’s economy,” according to the report released Thursday.

The ColoradoCast is a short-term predictor, looking about six months ahead, analyzing measures like the yield curve, housing prices measured by Case-Shiller, “risk spread between high quality corporate and ten year treasury returns,” unemployment claims and others.

“Our model suggests that the economy in Colorado will continue to grow into the fourth quarter at very modest rates,” Phyllis Resnick, executive director and lead economist, told the Denver Gazette.

Much of that positive outlook has to do with home sales prices growing again, the Fed taking a pause on any more interest hikes and inflation abating, the report shows.

“The latest model projects only one month with negative annual rate growth, and that negative growth is only slightly negative, suggesting that the economy likely could retain a modest but positive rate of growth through the majority of the remainder of the year,” according to the report.

“When the housing markets are increasing, typically the economy is growing,” Resnick said.

“Housing prices once again turned upward, the yield curve slightly steepened (although still inverted) and the risk premium came off marginally,” according to the report. “These improvements, coupled with continued increases in equity markets were sufficient to maintain a forecast of modest growth with fewer months of projected economic declines.”

The yield curve is defined as “yield of fixed-interest securities is plotted against the length of time they have to run to maturity,” according to the Oxford Dictionary.

Resnick said she recently delivered remarks for the Georgia Bankers Association visit to Colorado Springs. They ran the Georgia state economy through the ColoradoCast model to compare with Colorado.

“It’s a very similar kind of trajectory as Colorado, though Georgia’s economy is growing a little more quickly,” she said. “That gave us some more confidence that in Colorado there’s a good chance, particularly over the next three-to-six months, that there’s some decent signs that the risk of recession is abating.”