For the 20th straight month, the Business Conditions Index for the Mountain States region, a leading economic indicator for the three-state area of Colorado, Utah and Wyoming, advanced above growth neutral 50.0. Supply managers report that despite continuing supply disruptions and elevated commodity prices, business conditions remain healthy. This growth is expected to continue for the next three to six months.
The index, which ranges between 0 and 100, rose to 58.4 from May’s solid 57.5. An index of 50.0 is considered growth neutral. It is a mathematical average of indices for new orders, production or sales, employment, inventories and delivery lead time.
Based on a monthly survey of supply managers in Colorado, the index declined for June to a still solid 54.4 from May’s 62.9. Components index for June were new orders at 66.0, production or sales at 52.2, delivery lead time at 52.3, inventories at 42.5 and employment at 59.2.
“Since bottoming out in January 2010, the Colorado economy has added approximately 24,000 jobs for a 1.1 percent gain. Based on our surveys, I expect the state to continue to add jobs at a healthy pace with an employment increase of more than 18,000, or 0.8 percent, for the rest of 2011,” said Goss Institute for Economic Research Director Dr. Ernie Goss.
