A leading economic indicator for Colorado, Utah and Wyoming fell for the fifth straight month in December as a downturn in housing combined with higher interest rates to slow overall growth, according to a Creighton University report Tuesday.
The business-conditions index was 53.8, down from 58.4 in November and 67.6 in October. The three-state index compiled by the Nebraska university relies on survey data from supply managers and business leaders. An index greater than 50 indicates expansion.
The regional prices-paid index, measuring inflation at the wholesale level, dipped to 64.6, its lowest level since November 2003, as a result of a slowing national economy and declining oil prices, economics professor Ernie Goss said.
The number of new hires also fell, with the December employment index dipping to 63.4 from November’s 75.1.
Colorado’s business-conditions index slipped to 50.4 from 55.6 in November and 53.8 in October. New orders stood at 47.2, production at 45.2, inventories at 45.2 and employment at 63.9. Goss said growth in manufacturing, which saw 1,000 new jobs in 2006, was hampered by weakness in food processing and computer and electronic component manufacturing.
“Fourth-quarter job growth in the region, while very healthy compared with the rest of the nation, was a full percentage point below that experienced in the first quarter of 2006,” Goss said. “I expect regional job growth to continue to slow somewhat for the first half of 2007 as the downturn in housing and higher interest rates reduce overall growth.”
The region’s confidence index, measuring economic expectations six months out, rose to 66.7 in December from 62.5 a month earlier.
