A reading above 50 indicates an expanding economy during the next three to six months, while one below 50 indicates a contraction.
The Colorado business index was at 42 in June, 44 in May and 38 in April.
Components of the index that are expanding included new orders and production. Existing inventories and employment continue to shrink.
Manufacturers will continue to shed jobs even as production ramps up, predicted Ernie Goss, director of Goss Institute for Economic Research, which distributes the index through Creighton University in Omaha.