Colorado’s economy continued to expand in July, although it has slowed slightly since June, according to a survey released Monday.
The Goss Business Conditions Index, based on a survey of Colorado supply managers, was a “still solid” 54.2 in July, although it declined from June’s 54.4.
An index value greater than 50 indicates economic expansion, while a value lower than 50 indicates contraction.
Components of the Business Conditions Index for July were new orders with an index value of 58; production or sales, 51.1; delivery lead time, 51.2; inventories, 43.8; and employment, 67.1.
“Driven by solid employment gains and unemployed exiting the workforce, Colorado’s unemployment rate has declined 0.7 percent over the past three months,” said Ernie Goss, who conducted the survey. “Based on recent surveys, I expect continuing improvements in the state’s labor market with somewhat slower job growth and a slight improvement in the state unemployment rate.”
The report said that for the 21st straight month, the overall index for the Mountain States of Colorado, Wyoming and Utah advanced above 50. In July, the overall Mountain States index was 57.4 percent, a dip from June’s 58.4.
The bottom line is that there should be “slow but positive growth in the months ahead,” the report said.
Nonetheless, the decline from June indicates that businesses are less optimistic than they were a month ago.
“Elevated energy prices, an unhealthy housing market and uncertainty surrounding the U.S. debt situation remain important factors restraining business confidence,” Goss said.
“The likelihood of a double- dip recession is rising. It is rising but still not imminent,” he said.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
