Mountain States index keeps moving up

SALT LAKE CITY — The upward trend continues. The Business Conditions Index for the Mountain States region climbed above growth neutral 50.0 for the 16th consecutive month.

According to surveys of supply managers, the region is expected to experience improving economic conditions in the coming months. The index cited higher energy commodity prices and upturns in international sales as major contributing factors.

The regional index for January dipped to 56.2 from 57.6 in the prior month. Despite the slight decline, the survey suggested the economies of Utah, Colorado and Wyoming would expand in the months ahead, according to Ernie Goss, director of Creighton University's Economic Forecasting Group and the Goss Institute for Economic Research.

The Goss Institute conducts the monthly survey for Supply Management Institutes in the three states making up the Mountain States region — Colorado, Wyoming and Utah.

The Beehive State's overall index once again advanced above growth neutral 50.0. Based on the monthly survey of the membership of National Association of Purchasing Managers — in Utah, the overall index dipped to a still healthy 55.9 from 57.4 in December.

Components of the state's Business Conditions Index for January were new orders at 58.7, production or sales at 56.3, delivery lead time at 58.1, inventories at 55.1, and employment at 51.5.

"Both durable and nondurable goods manufacturers in the state experienced healthy business conditions for January," Goss said. "Producers of metal products continue to report healthy economic conditions and improving prospects."

The January regional employment index climbed to 57.2 from 56.4 in December, the index indicated.

"Businesses in our survey are expanding their pace of hiring," said Goss. "Expect the pace of hiring for the next six months to trend upward, especially for manufacturers tied to energy and the global economy."

January business activity was particularly strong for durable goods manufacturers, he added.

"This will continue to spark overall economic conditions for the first six months of 2011," Goss said.

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