Colorado’s economy continued to contract last month, according to the Business Conditions Index from Creighton University.
The June Business Index for Colorado, released Wednesday, slumped to 42 in June from May’s reading of 44. An index number below 50 indicates supply managers in the survey reported contracting conditions.
New orders were at 40.9, production at 43.2, inventories at 38.6 and employment at 42.2.
Despite weak current conditions, supply managers, who control purchasing decisions, are optimistic that things will improve six months out and say inflation remains under control, according to the report.
A broader regional index shows that job losses in Colorado, Wyoming and Utah have accelerated in the past three months even as they have slowed nationally.
Job losses regionally are accelerating because of layoffs in mining and natural resources and in durable- goods manufacturing, said economist Ernie Goss, the report’s author.
“Over the past year, Colorado has lost more than 14,000 manufacturing jobs, with a large percentage of the losses among durable-goods producers,” Goss said.
Colorado’s unemployment rate will top out at 8.2 percent before year-end, Goss predicted. It stood at 7.6 percent in May versus a 9.4 percent rate nationally.
About 12,000 Colorado workers have left the labor force in the past three months but could start looking again if the job market improves, Goss said.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
