The Colorado Business Index
As mentioned in earlier blogs, the Colorado Business Index is a monthly report of expected Colorado business activity. This index jumped to 56.5 in August, up from 54.8 in July, before dropping more than 4 points – to 52.2 – in September. Despite the slip, the state is still poised for economic growth, with the index reporting that Colorado is adding jobs at an annual pace exceeding 2%; this is more than double the pace of the entire nation.
This index is based on a monthly survey of business supply managers within the state and ranges from 0-100. Readings above 50 signal expanding economic conditions over the next 3 to 6 months; a reading of 50 is considered “growth neutral”, and below 50 signals economic contraction for the next 3 to 6 months.
The overall index averages individual readings for
- New orders – down to 50.0 from 52.2 in August and 52.1 in July
- Production /sales – down to 44.1 from 53.7 in August and 49.6 in July
- Delivery lead time – down to 66.0 from 79.7 in August and 59.4 in July
- Inventories – up to 46.7 from 43.5 in August and 61.9 in July
- Employment – up to 54.4 from 53.3 in August and 50.7 in July
Nondurable goods producers are adding jobs even while durable goods manufacturers are reducing jobs.
Three-State Business Conditions Index
A three-state Business Conditions Index that covers Colorado, Utah and Wyoming was also released during the first week of October. This index similarly ranges from 0-100, with readings above 50 signaling expanding economic conditions over the next 3-6 months. Mining firms and companies that support mining activities are experiencing pullbacks in economic activity and pushed the regional index down to 51 in September – down over 3 points from August and down 5 points from July. Despite the drop, growth is expected to continue, albeit at a slower pace, due in part of upwardly trending construction activity.
In addition, within this survey, business supply managers were asked how the Affordable Care Act is affecting their hiring initiatives. Of those surveyed, 74% claimed that the ACA had yet to affect hiring for staffing, while only approximately 26% said that the legislation had reduced hiring, reduced hours or resulted in layoffs.
Job Store is proud to be a part of the Colorado economic environment. With our 40 years of experience, and our knowledge of the local marketplace, we know how to source the talent you need to grow with our vibrant state. Your success is what is important to us, so contact us today.
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