Economic growth still robust in West

Supply managers and business leaders remain optimistic toward continued economic growth in a three-state region in the West that includes Utah.

The overall business-conditions index by Creighton University in Omaha, Neb., rose to 65.7 in March, up from 61.7 in February.

In Utah, the index registered at 64.3, down slightly from February's reading of 65.6 but above January's "vigorous" 62.5, the report said.

An index reading of 50 or higher indicates economic expansion over the next three to six months. The index surveys local supply managers and business leaders in Utah, Colorado and Wyoming. Roughly 100 to 150 Utah supply managers representing various industries are included in the survey.

"Our survey confirms other data that indicates Utah is one of the fastest-growing states in the U.S.," the report said. "Utah has gained almost 38,000 jobs, or 3.4 percent over the past year."

Ernie Goss, who is a Creighton economics professor and author of the monthly index, said in a prepared statement that he did not expect Utah to continue to grow at such a high pace. In the past months, Goss said, durable goods manufacturing and hospitality and leisure showed continued strength.

Goss, however, cautioned that higher interest rates, combined with increasing oil prices, were beginning to take a toll on confidence among supply managers.

The Creighton survey mirrors a national report by the Institute for Supply Management. The institute's index of manufacturing activity indicated that the industrial sector grew in March for the 22nd consecutive month, but at a slightly reduced pace from February. The index registered 55.2 in March, down from February's 55.3 reading. The performance was a bit stronger than the 55.0 analysts had expected.

The reports from ISM are watched closely by economists and investors because they are among the first readings of the nation's economic performance for any given month.

The ISM's manufacturing report said that 16 industries reported growth in March; activity was level in tobacco and petroleum, while the paper industry reported decreased activity.

Norbert J. Ore, head of the group's survey committee, said the March number was boosted by strong readings in new orders and inventories.

"The manufacturing sector maintained its strength in March, finishing the first quarter in a relatively strong position," Ore said in a statement accompanying the report.

He said, however, that a strong rise in prices — include those for petroleum products — "continues to present a problem for manufacturers."

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Contributing: Associated Press

E-mail: danderton@desnews.com