Business conditions are 'healthy' but still slipping

Utah's business conditions were "healthy" but nonetheless continued to slip in April, according to an economic report from Creighton University in Omaha, Neb.

Utah's business-conditions index, based on a survey of supply managers and business leaders, was at 58.9 in April, down from 64.3 in March and 65.6 in February.

The index ranges from zero to 100, with a figure greater than 50 indicating a growing economy over the course of the next three to six months.

Utah's overall index was affected by the new-orders component at 66.7, production at 61.1, delivery speed at 38.9, inventories at 38.9 and employment at 77.4.

"Strength was reported by firms in the sectors of durable goods manufacturing, transportation and financial services and in the state's large leisure and hospitality industry," Ernie Goss, a Creighton economics professor and director of the Creighton Economic Forecasting Group, said in a prepared statement. "As in past months, weakness was recorded in the non-durable goods manufacturing sector, especially food processing."

Goss also noted that Utah has lost more than 9,000 manufacturing jobs during the past five years. "Applying our survey data to the state economic forecasting model indicates that Utah will add roughly 3,500 manufacturing jobs in 2005," he said.

Utah's overall 58.9 index compares with a national April figure of 53.3, according to the Institute for Supply Management, which uses the same methodology as the Creighton index.

The overall index for the Mountain States region was 66.7, a record high and up from March's 65.7. Both Colorado and Wyoming had higher figures, in contrast with Utah's slippage.

Colorado's overall figure was 70.1, up from 62.2 in March and 51.7 in February. Wyoming had a 79.6 index, up from 73.5 in March and 71.7 in February.

"April's reading was the third straight increase, indicating strong economic growth for the region over the next two quarters. Despite higher prices for imported goods and energy, along with rising interest rates, supply managers and business leaders in the region remain very upbeat regarding future economic growth. The confidence index, which gauges supply managers' economic outlook six to nine months out, was up at 77.1," Goss said.

Meanwhile, the national manufacturing figure of 53.3 in April represented a sector that has expanded for the 23rd consecutive month, though the rate of growth slowed, continuing a trend that began in December.