Utah's economy showed strength in October, according to a monthly report gauging the business climate.

The Utah Business Conditions Index, produced by the Goss Institute for Economic Research based on a survey of the state's supply managers, increased to 50.9 from 48.5 in September.

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 October were new orders at 62.9, production or sales at 56.4, delivery lead time at 80.7, inventories at 47.3 and employment at 80.4.

"Surveys of supply managers in the state continue to display excessive volatility," Ernie Goss, director of the institute and Creighton University's Economic Forecasting Group, said in a prepared statement. "Even though the state's unemployment rate has declined over the past few months, I expect little improvement in the state's job market until early 2010."

Utah is among three states in the report's Mountain States business conditions index. The overall index climbed to 51.6 from September's 48.5 and 47.0 in August.

Despite the increase, indices over the past several months point to a struggling economy for the region composed of Colorado, Utah and Wyoming in the months ahead, the report stated.

"Even though unemployment rates are declining across the region, the labor market, like the national, is not in good shape," Goss said. "While our survey indicates the pace of job losses will diminish, I expect the region to continue to lose jobs."

Colorado's October monthly index climbed to 65.5 from 48.7 during the previous month, while Wyoming's index was 47.5, up from 47.0 in September.

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