Utah '07 growth is triple that of rest of the nation

Utah continues to lead the nation in business growth, particularly in manufacturing, which expanded nationwide for the sixth consecutive month in July.

Utah's growth in 2007 has been more than triple that of the rest of the United States, according to the Utah Business Conditions Index, a survey of supply managers and business leaders conducted monthly by Creighton University's Economic Forecasting Group.

"I expect this growth to continue well into 2007 with (the) unemployment rate dipping another 0.3 percent to 2.3 percent by October," economics professor and group director Ernie Goss said in a prepared statement Wednesday. "Manufacturing, both durable and nondurable, will lead this growth."

The state's business conditions index rose to 73.6, up from 68.2 in June and 65.4 in May. The index ranges from zero to 100, with a figure over 50 indicating an expansionary economy over the next three to six months.

New hiring was a factor in July, with Utah accounting for 33 percent of regional employment, the Creighton study states. The state is expected to experience 63 percent of regional job growth in the third quarter, compared to 31 percent in Colorado and just 6 percent in Wyoming.

Nationwide, expansion in the U.S. manufacturing sector continued for the sixth consecutive month, although at its slowest pace since March, the Institute for Supply Management said Wednesday. The Creighton group's survey uses the same methodology as the ISM.

The ISM's manufacturing index, which reflects the opinions of purchasing managers at factories, plants and utilities, registered 53.8 in July, down from 56.0 in June.

Wall Street expected the manufacturing index to remain unchanged from June, according to the consensus estimate of Wall Street economists polled by Thomson/IFR.

Still, stocks shot higher in a last-minute advance Wednesday after zigzagging for much of the day. The Dow Jones industrial average rose 150.38, or 1.14 percent, to 13,362.37. The Standard & Poor's 500 index rose 10.54, or 0.72 percent, to 1,465.81, and the Nasdaq composite index rose 7.60, or 0.30 percent, to 2,553.87.

According to the ISM report, new orders and production led growth, while inventories continued to contract, as they have for the past year.

Still, both new orders and production were slightly weaker in July than in June. The index for new orders registered 57.5 in July, down from 60.3 the month before, while the reading for production was 55.6 in July, down from 62.9 in June.