Business index holds steady

Business conditions remained steady in January, though not as robust as in recent months, according to a survey of Utah's supply managers and business leaders.

The Mountain States Business Conditions Index for Colorado, Utah and Wyoming dropped to 60.3 last month from December's reading of 66.4. In Utah, the index declined slightly to 62.5 from December's 63.3, but it remained above November's 58.5.

The index ranges from zero to 100, with a figure greater than 50 indicating an expansionary economy over the next three to six months. It is formulated by the Creighton Economic Forecasting Group at Creighton University in Omaha, Neb., using the same methodology that the Institute for Supply Management uses for its national index.

Also released Tuesday, that national index declined to 56.4 in January from a revised reading of 57.3 in December. The January figure was slightly below the reading of 57 anticipated by analysts.

"A cheap U.S. dollar making U.S. goods less expensive abroad has been a real boom for companies in the region," Ernie Goss, Creighton University economics professor, wrote in the Mountain States report.

"On the other hand, rapid declines in the value of the dollar, making foreign goods more expensive in the U.S., have yet to restrain imports as the January import index rose to 66.7 from December's 61.6. I expect the trade picture to improve in the coming months as regional firms increasingly turn to domestic suppliers because of the higher import prices."

Utah's manufacturing sector reported both strength and weakness. The index for new orders was 78.6, with production at 58.3, delivery speed at 42.9, inventories at 64.3 and employment at 55.5. New export orders hit 62.5, with imports at 50.

Colorado's index was 70.6, while Wyoming recorded a 64.3, according to the Creighton report.

For the three-state region, the prices-paid index climbed to a record high of 89.5 from December's inflationary 77.1. The index has been above 75 for 12 consecutive months, the report stated, suggesting inflationary pressures at the wholesale level.

Employers in the region also report good momentum in new hires, the report stated.