Colorado’s energy sector is experiencing some pullbacks during the month of June, according to the latest economic data, but its construction industry continues to expand.
The Goss Institute for Economic Research says Colorado’s economy is still healthy, but has seen some declines last month.
“The increase in the value of the U.S. dollar and the global economic slowdown have resulted in pullbacks in the state’s energy sector,” said Ernest Goss, director of the institute. “The state’s construction industry, on the other hand, continues to expand at a very healthy pace, positively affecting both manufacturing and non-manufacturing firms in the state. Durable goods manufacturers, including metal producers, are experiencing a slowdown in recent growth.”
The news is reflected in the rest of the Mountain region, which includes Colorado, Utah and Wyoming. The region as a whole continues to exceed the rest of the nation.
Overall, the business conditions index, which ranges between 0 and 100, declined to 58.6 from 61 in May. An index of 50 is considered growth neutral.
“Declines in business activity for the region’s large energy sector were more than offset by expansions among durable and non-durable goods manufacturers, particularly those linked to the region’s rapidly expanding construction industry,” Goss said. “A 5 percent increase in the value of the U.S. dollar for 2013 has been an important factor slowing industries producing commodities sold in international market.”
Goss said he expected the surging growth in the region to slow in the months ahead. The institute conducts a monthly survey for Supply Management Institutes in the three states compromising the Mountain State region.