Colorado’s leading economic indicators slipped in January, although it remained strong.
According to the Goss Institute for Economic Research, construction industry is weighing on the economy, even as the state’s large energy sector is pushing it forward.
“Durable and nondurable goods producers, especially those with ties to energy and international markets, are benefiting from the weak dollar policies of the Federal Reserve,” said Dr. Ernie Goss, director of the center. “I expect this trend to continue well into 2012.
The state needs 105,000 new jobs in order to get back to pre-recession employment levels, Goss said.
And while the state’s leading economic indicators slipped in January, they were higher than in November – leading Goss to believe the state’s on its way to a recovery.
A look at the entire Rocky Mountain region shows growth for the 27th month in a row. The region includes Colorado, Utah and Wyoming. The regional reading is higher – again for more than two years – than the national growth.
The business condition’s index rose to 61.3 – anything above 50 is growth, anything below is a contraction. The index is calculated through a mathematical average of indices for new orders, production or sales, employment, inventories and delivery lead time. It’s the same methodology used by the Institute for Supply Management.
“Mountain tates growth has significantly exceeded and will likely to surpass that of the national economy,” Goss said. “Surveys of supply managers in the region point to healthy job growth for the first half of 2012. Growth will be especially strong for firms tied to agriculture, energy and international markets.”