Mountain states economies could fall with drought
The index, a mathematical average of indices for new orders, production, sales, employment, inventories and delivery lead time, declined from 57.2 in June to 56.1, according to Creighton University's Goss Institute for Economic Research.
The good news? The index in June remained above a growth neutral rating of 50 for the 33rd straight month, meaning the region's economy remains healthy overall.
Nationally, the index declined to 49.7 in June after moving above growth neutral for 34 consecutive months.
At the time of the survey, weather conditions had not yet adversely affected companies in the mountain states, Goss Institute for Economic Research Director Ernie Goss said.
"Only 14 percent of the firms reported that drought conditions had increased the costs of inputs for their companies' sales, while almost none reported impacts on company sales," Goss said. "I expect this to change in the months ahead, pulling the overall index lower."
In the mountain states, the employment index slipped from 63 in June to 59, but continues to outperform the nation in terms of job growth. Goss, however, expects that advantage to close in the months ahead as regional growth tied to exports and energy weakens.
The wholesale prices index advanced slightly, while business confidence dropped. Inventories climbed with the addition of raw materials and supplies while export trading declined.
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