Business conditions slow a bit in region

Steady she goes, if a little more slowly.

The Mountain States Business Conditions Index, released Friday, improved to 75.6 from July's 75 and June's 65.4. The monthly report, prepared by Creighton University in Omaha, Neb., is based on a combined survey of local supply managers and business leaders in Utah, Wyoming and Colorado.

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, a private research group that surveys purchasing and supply executives in more than 350 industrial companies nationwide.

Utah's business conditions saw a precipitous drop in August, to 70.6 from July's 80.6, possibly signaling a let-up from the red-line pace of previous months. Job growth is playing a role in that, with employers finding it increasingly difficult to find qualified workers.

"Utah has added jobs at an annualized pace of more than 6 percent over the past three months," Ernie Goss, Creighton University economics professor and author of the report, wrote Friday. "As a result, the state's unemployment rate declined by 0.5 percent since January. However, this pace cannot be sustained with current labor availability. Our survey indicates that growth will continue but at a slower pace for the rest of 2006."

Aside from that, Utah's economy is still showing its muscle, Goss said.

"Residential and commercial construction firms continue to report solid growth even as the national construction industry experiences pullbacks," he said. "Utah's transportation sector detailed solid improvements for August."

Colorado's index registered 71.3, down from July's 72.5, while Wyoming advanced to 84.0 from July's 71.7 and June's 63.3.

"Based on our data and other government data, the region is expanding at roughly three times the rate of the U.S. economy," Goss wrote.

The ISM's nationwide report, also released Friday, registered 54.5 in August, just below the 54.7 July reading.

"The major concerns in manufacturing at this point are the continued upward pricing pressure that has existed for the past 13 months, and some industries are experiencing a degree of inventory buildup," said Norbert J. Ore, the institute's chairman.