Utah's economy perks up

Utah businesspeople had a reason to be thankful in November, as the state's business conditions improved during the month, according to a Creighton University report.

The state's business conditions index, compiled through a survey of supply managers and business leaders, jumped to a "healthy" 58.3 in November, compared with a "solid" 56.5 in October, the Creighton Economic Forecasting Group said.

Released Thursday, the index ranges from zero to 100, with a figure over 50 indicating an expansionary economy over the next three to six months. It uses the same methodology as a national survey conducted by the Institute for Supply Management.

The ISM survey showed that the manufacturing sector of the nation's economy grew in November at a slower pace than in the previous month. The institute said its manufacturing index was 58.1 last month, down slightly from October's reading of 59.1. November marked the 30th consecutive month of growth in the manufacturing segment.

"I expect Utah businesses to add approximately 50,000 jobs for all of 2005 for a 4.4 percent growth rate," Ernie Goss, Creighton economics professor and director of the Omaha, Neb., forecasting group, said in announcing the index. "This compares to U.S. job growth of 1.6 percent for 2005. However, based on our survey, the gap between Utah and the nation will decline in the months ahead."

Components of the Utah index for November included 64.2 for new orders, 58.3 for production, 46.6 for delivery lead time, 64.2 for inventories and 55.4 for employment.

"Contrary to most of the nation and region, Utah continues to experience growth in its information industry," Goss said. "November upturns were also reported by firms in the durable goods sector, while nondurable companies detailed little to no growth for the month."

The overall index for a three-state Mountain region that includes Utah fell in November for the fourth consecutive month. The figure for November was 62.5, the lowest since February and down from October's 63.2.

Colorado's overall index was 54.6, down from 57.2 in October, while Wyoming's was 82.1, up from 79.4 the previous month.

"Higher interest rates and elevated energy costs are cooling growth in the three-state region," Goss said.

The employment component for the Creighton index rose to 59.4 from October's 56.5.