Colorado’s construction industry is the clear economic leader and continues to outpace the other sectors, positively affecting both manufacturing and non-manufacturing firms in the state.
Similar to surveys over the past several months, the overall index for the Mountain States region for June, a leading economic indicator for the three-state area of Colorado, Utah and Wyoming, stood at a very healthy reading. The June index from the survey of supply managers, as in past months, continues to exceed the national index and points to regional growth significantly exceeding that of the U.S.
For Colorado The Business Conditions Index, which ranges between 0 and 100, actually declined to 58.6 from 61.0 in May. An index of 50.0 is considered growth neutral. The overall index is a mathematical average of indices for new orders, production or sales, employment, inventories and delivery lead time. This is the same methodology used by the national Institute for Supply Management.
Components of the Business Conditions Index for June were new orders at 54.3, production or sales at 49.2, delivery lead time at 634, inventories at 73.8, and employment at 52.5. The increase in the value of the U.S. dollar and the global economic slowdown have resulted in pull-backs in the state’s energy sector.
Read the full ColoradoBIZ article by Ernest Gross here…