A monthly index tracking business conditions in Colorado has rebounded to its highest level in nearly a year on continued growth in the energy sector and exports.
The Business Conditions Index jumped more than nine points in May to 62.9. That’s the highest reading since the index stood at 68.4 in June 2010.
The index ranges from 0 to 100. Readings above 50 signal an expanding economy over the next three to six months.
“Healthy energy commodity prices continue to boost growth in the state’s large energy sector, while expanding exports remain an important contributor to Colorado’s durable goods manufacturing growth,” said Ernie Goss, director of the Goss Institute for Economic Research in Denver.
Goss calculates the index for Colorado, Utah and Wyoming based on the results of monthly surveys of supply managers in the mountain states region.
In addition to good news, the latest survey results for Colorado also include bad news, Goss said. “Nondurable goods manufacturing firms in the state are experiencing little new growth. However, the construction industry remains the biggest impediment to overall state growth.”
The overall index for Colorado reflects higher component readings for new orders at 81.9, production or sales at 79.5 and employment at 54.2.
The combined Business Conditions Index for the mountain states slipped more than a point in May, but at 57.5 continues to forecast growth for a 19th straight month.