An improving construction sector and expanding wholesale trade are helping to fuel expectations for economic growth in Central California over the coming months.
The San Joaquin Valley Business Conditions Index, prepared by economist Ernie Goss for the Craig School of Business at Fresno State, Fresno, slid to a score of 57 in June, compared to May's 57.4.
A score of 50 is considered neutral; anything higher suggests economic expansion in the region over the next three to six months.
"Construction activity continues to improve in the region, spilling into the broader economy," Goss said. "Additionally, expansions among wholesale trade firms boosted June readings."
This is the 18th month out of the last 19 that the index has been higher than 50, Goss said.
The index is based on a survey of company purchasing managers in Fresno, Madera, Kings and Tulare counties, and evaluates employment, wholesale prices, business confidence, inventories, imports and exports, business confidence, production, and delivery lead time.