Colorado’s economy continued to expand in August, although it slowed slightly from July, according to the Goss Business Conditions Index.
Based on a survey of Colorado supply managers, the Colorado index was 53.8 in August, down from July’s 54.2. An index value greater than 50 indicates economic expansion, while a value lower than 50 indicates contraction.
August components of the Business Conditions Index in Colorado included new orders at 54 and employment at 68.5 — a figure driven by energy jobs, according to Ernie Goss, who conducted the survey.
“Energy extraction firms have added significantly to their workforce, gaining back jobs lost to the recession,” Goss said.
He said that from the recession’s end in July 2009 to July 2011, the Colorado energy sector added 5,100 jobs — from 22,900 in July 2009 to 28,000 employees in July 2011.
“That is significant growth — a little more than 20 percent growth,” said Goss. “Colorado is approaching the highest level of jobs ever seen in that sector.”
The greatest number of energy jobs was in November 2008 at 29,900.
Goss said Colorado has also benefited from the cheap dollar, with significant exports of computers, electronic components and metal products.
Although job numbers were strong, business confidence plunged.
In the three-state mountain region of Colorado, Utah and Wyoming, the confidence index among supply managers hit recession levels — tumbling to 44.5 in August from 50.1 in July.
“The uncertainty surrounding the federal government and Federal Reserve actions have dampened the economic outlook of supply managers in the region,” said Goss, adding that the confidence index has moved to “levels experienced during the last recession.”
Goss said that for the 22nd consecutive month, the overall index for the three-state region advanced above the neutral 50. The index for the region was 56.8 in August, a dip from 57.4 in July.
Goss said that while growth is likely to slow slightly due to a slowing U.S. economy, the survey indicates that a strong energy sector and a stabilizing housing market will positively influence the regional economy.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
