Index: Valley to continue slow growth

Source: The Business Journal

The Valley economy’s slow growth is expected to creep at an even more sluggish rate, according to the San Joaquin Valley Business Conditions Index released on Wednesday. The overall index of monthly survey published by the Craig School of Business at Fresno State dropped to 50.6 in the month of August. Although it is a decline from the 51.6 index of July, it’s still above the growth neutral index of 50. “Our survey results indicate that growth will remain positive but weak over the next three to six months,” said Ernie Goss, the research associate heading the study, in a release. “However, the national ISM index has now moved below growth neutral for three months in a row.” However the employment category indicated contraction with an index of 48.6 in August, compared to 51.3 in July. Cost of goods continues to rise, as the wholesale price index rose to 62.3 in August, from 52.9 in July. “This is the first indication that the recent period of very benign inflation may be ending,” Goss said. New export orders took nearly a 10-point dive to 34.8 in August, from 44.6 in July. Business confidence dropped even more to 38.8 in August.

URL to original article: http://www.thebusinessjournal.com/news/economy/3157-index-valley-to-continue-slow-growth

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