Colorado’s economic indicators slipped in May, but remain healthy, according to information from the Goss Institute for Economic Research.
Employment, production and sales, inventory and new orders are all still above national levels, however.
“Durable goods producers are outperforming non-durable goods manufacturers in the state,” he said. “Heavy manufacturers are adding employees at the same time that they are expanding the hours worked of their current workforce.”
The economic index ranges between 100 and zero, and is developed by averaging indices for new orders, production, employment, inventories and delivery lead time. Goss uses the same methodology developed by the Institute for Supply Management.
For the mountain region as a whole – which includes Utah and Wyoming – the economic index indicates continued growth for the 31st straight month, according to a press release from the institute.
“The businesses that we survey continue to benefit from healthy farm and energy income and exports in early 2012,” Goss said. “However, recent strong gains in the value of the U.S. dollar have reduced energy and farm commodity prices and additionally made U.S. goods less competitively priced abroad. This has and will continue to soften economic growth in the region.”
At this point, the economy is still growing, but at a slower rte. Tech firms, especially those dependent on international sales, will experience slower growth in the next six months, Goss said.
More than one in four of the supply managers said that the European economic crisis produced negative fallout in the companies.
“Although exports to Europe are relatively small for most firms in the region, the impacts via the strengthening of the dollar are considerable. On a positive note, as the euro has weakened, so have the prices of supplies from Europe.