Economy index up slightly in December

SALT LAKE CITY — The Mountain States Business Conditions Index for Utah climbed above growth neutral 50.0 last month.

The survey of supply managers suggests the economies of Utah, Colorado and Wyoming will expand in the months ahead.

Based on the monthly survey of the membership of the National Association of Purchasing Managers — Utah, the overall index climbed to 57.4 from 56.1 in November.

Components of the overall index for December were new orders at 62.4, production or sales at 60.1, delivery lead-time at 60.9, inventories at 50.7 and employment at 53.0.

"For 2010, Utah's employment growth exceeded that of the U.S. with mining and durable goods manufacturing leading the way," said Ernie Goss, director of Creighton University's Economic Forecasting Group. "Recent survey results point to improving economic conditions for the first half of 2011 with more than 18,000 jobs added for the six month period, a pace more than twice that of the same period in 2010."

For the 15th consecutive month, the overall index for the Mountain States region advanced above growth neutral 50.0. According to surveys of supply managers over the past several months, including December's, the region will experience positive and expanding economic conditions in the months ahead.

The overall index for December climbed to 57.6 from 56.0 in November. The Goss Institue conducts the monthly survey for Supply Management Institutes in the three states comprising the Mountain States region — Colorado, Utah and Wyoming.

"Regional firms with close ties to mining and durable goods manufacturing continue to report healthy and improving economic conditions," Goss said. "The weak U.S. dollar and the expanding global economy will push regional growth for the first half of 2011 well above the same period for 2010."

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