Get breaking news alerts via email

Click here to manage your alerts
(Mark Duncan/The Associated Press) Organizers said they hope the program will help 15,000 veterans qualify for careers in manufacturing.
Output in Utah continues its climb
Indexes » Manufacturing in U.S. grows for first time in 4 months.
First Published Oct 01 2012 09:34 am • Last Updated Oct 01 2012 09:06 pm

Utah manufacturing activity in September climbed to the highest level in seven months as companies linked to energy production turned robust demand and high prices to their advantage.

The overall index of manufacturing conditions advanced to 61.7 from an already healthy 60.6 in August, the Goss Institute of Economic Research said Monday. A reading above 50 indicates growth; 57 is considered robust.

Join the Discussion
Post a Comment

"Manufacturers, both durable and nondurable, in the state are experiencing healthy growth," economist Ernie Goss said. "Utah firms with ties to energy are expanding and will continue to grow as the Federal Reserve’s cheap money policies push energy commodity prices higher."

Among the components of the monthly index, production and new orders were strongest, with readings of 70.8 and 62.7, respectively. That suggests production will increase in the coming months.

The employment component, at 51.8, weakened from 53.2 in August, indicating that companies didn’t add a lot of workers last month to keep up with demand. That could change, though. On Monday, the price of oil finished higher after the Institute of Supply Management said that its national index of manufacturing activity rose to 51.5 — the first upward move in four months. In August, the index was 49.6.

The U.S. reading "will boost hopes that some of the recent slowdown in economic growth was just a summer phenomenon," Paul Dales, an economist at Capital Economics, said in a note to clients.

The increase could signal that factory activity is picking up after a weakening this spring because of declining consumer demand and a drop in exports.

The improvement in the United States comes even as growth is slowing overseas. Europe’s financial crisis has pushed many countries in the region into recession. Growth in emerging nations such as India and China has slowed.

The U.S. economy grew at an annual rate of just 1.3 percent in the April-through-June quarter, down from a 2 percent growth in the previous three months. Most economists expect growth will stay near or below 2 percent for the rest of this year — too slow to lower the unemployment rate.

The Associated Press contributed to this story.

story continues below
story continues below


Twitter: @sltribpaul

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.