Survey: Valley economy growing in June, but should slow

Source: The Business Journal

The San Joaquin Valley Business Conditions Index increased to 55.5 in June, after declining the previous two months, according to the monthly release on Monday from Fresno State’s Craig School of Business. Although May’s index of 54.6 was down from the previous month, it was still higher than 50—indicating growth. Approximately one-third of the survey participants reported the low interest rates were the primary factor in the growth. However Ernie Goss, the research associate heading the study, indicated the recent increase in rates will limit expansion. “While rates have risen over the past month, I expect interest rates to stabilize at their current levels supporting positive but somewhat slower growth for the months ahead,” Goss said. The employment index for June rose to 58.4 from 55.7 in May. However trade dropped to 49.9 in June from 59.9 in May and inventories increased to a weak 46.8 in June but up slightly from 46.3 in May. The wholesale price index fell to 58.8 in June from 62 in May.

URL to original article: http://www.thebusinessjournal.com/news/economy/6802-survey-valley-economy-growing-in-june-but-should-slow

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