Manufacturing jobs adds to Valley economic surge in June

A measurement of the Valley’s economic health surged more than three points from May to June, representing the third increase in four months, in part on the strength of job growth in the manufacturing sector.

The San Joaquin Valley Business Conditions Index, compiled by Fresno State research economist Ernie Goss, climbed to a score of 58.3 in June, up from a score of 55 in May. An index of 50 is considered neutral, and anything higher suggests that the economy will continue growing over the next three to six months. June was the 18th consecutive month in which the index was above the neutral 50 mark.

“Nondurable goods manufacturers, including food processors, continue to experience healthy business growth,” Goss said in a written statement. “Monthly surveys for the San Joaquin Valley continue to be much stronger than comparable U.S. numbers.”

The index is produced from a survey of purchasing executives from companies in Fresno, Kings, Madera and Tulare counties. It considers factors including employment, wholesale prices, business confidence of executives, inventory, imports and exports, new orders, sales and delivery lead time.

Hiring was a highlight of the June index. The gauge for employment, which has been above 50 since October 2013, leaped to 62.6, compared to the May index of 59.7. “Hiring was healthy across a broad range of industries in the area, from food processors to wholesale trade,” Goss said. “The region’s unemployment rate remains above the U.S. rate, but is trending downward at a solid pace.”

But, he added, the ongoing drought is tempering executives’ business confidence, which dipped slightly from 54.3 in May to 54.1 in June — still above neutral.

This story was originally published July 2, 2015 at 5:29 PM with the headline "Manufacturing jobs adds to Valley economic surge in June."