Economy growing briskly
But U.S., Utah may soon feel impact of inflation
The business conditions index for Utah's manufacturing sector decreased to 59.4 from March's 64.2, according to a report from Creighton University in Omaha, Neb. The Creighton study is based on a monthly survey of local supply managers and business leaders.
The index ranges from zero to 100, with a figure over 50 indicating an expansionary economy over the next three to six months. It uses the same methodology as a national survey conducted by the Institute for Supply Management, a private research group that surveys purchasing and supply executives in approximately 400 industrial companies nationwide.
"Even with the (Federal Reserve's) foot on the brakes, and rapidly rising prices, the regional economy continues to expand at a breakneck pace," Creighton economics Professor Ernie Goss wrote in the regional report. "At the same time, we are recording some pass-through of higher energy prices with transportation firms adding surcharges that are showing up in supply prices."
In a separate report released Monday, the ISM said its manufacturing index rose to 57.3 in April from 55.2 in March. Wall Street analysts had expected the index to be down slightly at 55.0.
However, Ore said, manufacturers "still have major concerns about the impact of higher prices for energy and industrial commodities."
The ISM report was one of three released Monday that drove stocks lower on Wall Street. The Dow Jones industrials lost 23.85 points to 11,343.29.
In a second report, the Commerce Department said total construction spending in March climbed to $1.199 trillion, on an annualized basis, surpassing the previous record high set in February. That marked a 0.9 percent increase.
Private builders ramped up spending on a variety of projects in March, including residential construction and factories. The government also spent more on big public works projects, including power plants.
In another report from the department, consumer spending rose 0.6 percent in March, an improvement from February's 0.2 percent increase. Consumer spending plays a key role in shaping overall economic activity.
Incomes, the fuel for future spending, advanced 0.8 percent in March. That was up from a 0.3 percent increase in February and was the largest gain since September.
In the ISM manufacturing report, of the 20 sectors tracked, 15 reported growth. New orders were growing at a slower rate in April, with the index reading 57.6 last month after March's 58.4. The index measuring manufacturers' backlog of orders also slowed, to 57.0 in April from 59.5 in March.
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