Small-business index dips again

The Zions Bank Small Business Index for Utah fell in April, the fourth time in the past five months that it showed a decline.

The index, released Tuesday, registered 92.1 in April, down from a revised 92.5 in March. The March figure was the lowest the index had been since 2003, until this most recent reading.

The index measures business conditions from the viewpoint of Utah small-business owners and managers, using 100.0 for calendar year 1997 as its base. A higher number indicates greater likelihood for business success, while a lower number is associated with less-favorable business conditions, according to Jeff Thredgold, economic consultant for Zions Bank, president of Thredgold Economic Associates and author of the report.

Despite the decline in the small-business index, stronger-than-expected U.S. economic growth during the first quarter is a positive sign for Utah's small-business sector, Thredgold said in the report. The U.S. economy lost an estimated 20,000 net jobs in April, a much smaller loss than feared, he said. The U.S. unemployment rate declined slightly to 5 percent.

Utah's unemployment rate — the index's most heavily weighted component — was estimated at 3.3 percent in April, up from the previous month's 3.0 percent rate.

He said the 3.3 percent rate was higher than the 2.4 percent rate during the same month one year ago. He added that a higher Utah unemployment rate is a positive contributor to the index as it implies increased access to Utah labor.

Total Utah employment rose by an estimated 26,200 jobs — up 2.1 percent — over the past 12 months, Thredgold said. The rise compares to a gain of 28,800 jobs in the previous year-over-year period, he added.

The 2.1 percent increase still ranks as one of the strongest job growth rates in the nation, Thredgold said.

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