Utah business conditions decline a bit

Utah's business conditions slipped a bit in September, according to a monthly gauge derived from a survey of the state's supply managers.

The Utah index produced by the Goss Institute for Economic Research was at 48.5 in September, down from 49.0 in August and 52.6 in July.

The index ranges from zero to 100, with a figure above 50 indicating an expansionary economy over the next three to six months.

Components of Utah's overall index for September were new orders at 60.0, production at 53.3, delivery lead time at 43.5, inventories at 41.3 and employment at 44.6.

"Over the past year, Utah lost more than 55,000 jobs, or 4.4 percent of its non-farm employment," Ernie Goss, director of both the institute and Creighton University's Economic Forecasting Group, said in a prepared statement. "Much of past weakness was in the state's large durable-goods manufacturing sector. While we have yet to record improvements in this sector, the negatives have clearly become less negative."

Utah is part of a three-state Mountain States business-conditions index that the institute oversees. The region's index was 48.5 in September, up from August's 47.0 but down from July's 51.5. The September figure "points to continuing economic weakness for the rest of 2009," the institute said.

"Even though the overall index was below growth-neutral for a second straight month, the leading economic indicator is up significantly from levels in the first quarter of this year," Goss said. "What our surveys are telling us is that the regional economy is crawling out of the recession with the negatives getting less negative."

Colorado's index fell to 48.7 from August's 47.5. Wyoming's was 47.0, up from 46.8 in August.

The Goss institute uses the same methodology as a national survey of the Institute for Supply Management. The national figure, released Thursday, was 52.6 in September, down from 52.9 in August but still indicating an expansionary economy.