Utah's business index skyrockets

The economy soared in three Mountain states last month, with Utah leading Colorado and Wyoming in new hiring and manufacturing production, according to a report Thursday from the Creighton Economic Forecasting Group.

The report tracks business conditions based on an index that ranges from zero to 100. Utah's index reading in January skyrocketed to 86.8 from December's 53.6, the report said.

"January's growth was broad-based for industries in Utah," said Ernie Goss, an economics professor at Creighton University in Omaha, Neb. "Advances were especially significant for trucking firms, and nondurable-goods manufacturers, including food processors. Firms with close ties to the transportation equipment manufacturers detailed pullbacks in January economic activity."

Colorado's index reading jumped to 69.8 from December's 50.4. Wyoming's index dropped to 77.0 from December's 83.5.

Goss said overall economic activity in the three-state region was very good, with energy production accounting for a significant portion of the January expansion.

"Given our numbers and the latest government data, I expect the Federal Reserve to make no interest rate changes in the near future as the downturn in housing and oil prices below $60 per barrel restrain inflationary pressures," Goss said. "However, a large rebound in oil prices would likely push the Fed to raise rates."

Nationally, the manufacturing sector contracted in January.

The Institute for Supply Management said Thursday that its manufacturing index registered 49.3 in January, reversing an expansion in December, when the index stood at 51.4.

"The report was a bit weaker than expected," Bank of America senior economist Peter Kretzmer told the Associated Press. "The flat period in manufacturing appears to be lasting longer than expected."

The Creighton 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. An index reading of 50 or higher indicates economic expansion over the next three to six months.

The Creighton survey is patterned after that of the ISM, based in Tempe, Ariz.

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