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Colorado business index forecasts growth

Ernie Goss

A monthly index tracking business conditions in Colorado continues to increase on the strength of growth in the housing and manufacturing sectors.

The Business Conditions Index rose more than four points in February to 58.9. With gains in the last two months, the index has climbed to its highest level since August. The index remains below the 59.1 reported for February 2012, however.

“The state’s housing sector is now stimulating overall growth in the state. Additionally, both durable and nondurable manufacturing firms experienced healthy growth this month,” said Ernie Goss, director of the Goss Institute for Economic Research in Denver.

Goss calculates the Business Conditions Index for the mountain states of Colorado, Utah and Wyoming based on the results of monthly surveys of supply managers in the three states. Readings range from 0 to 100.

Readings above 50 forecast expanding economic conditions over the next three to six months.

The overall reading for Colorado reflected high component readings for new orders at 60, employment at 58.9 and production or sales at 49.6.

The combined Business Conditions Index for the mountain states edged up a tenth of a point in February to 54.9.

“Firms with ties to agriculture and energy continue to expand at a solid pace. Additionally, companies dependent on international sales experienced solid growth for the month,” Goss said.

 

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