Fresno, Valley economic index stays in positive territory

An index of economic indicators for the central San Joaquin Valley slipped last month, but the Fresno State study still pointed toward positive growth in the coming months.

The San Joaquin Valley Business Conditions Index, compiled by research economist Ernie Goss for Fresno State’s Craig School of Business, came in at 53.9 for August. That was down from 57.1 in July, but it still is above what Goss said is a growth-neutral score of 50. Anything above 50 suggests economic growth over the next three to six months.

“This economy (in the Valley) has been moving forward positively for 21 straight months and we’re seeing some pretty good numbers,” Goss said in a video statement. “For the rest of the year, growth is expected to be positive, but a little slower in the coming three to six months than in the previous months. But that’s not so bad for Fresno or the San Joaquin Valley.”

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.

Goss said the employment gauge continues to be a good sign for the region. The employment indicator was measured at 54.1 in August, compared to 54.8 in July. “That’s still a pretty good reading,” he said. “Companies in the San Joaquin Valley…continue to add jobs.”

Goss added that manufacturing is improving and expanding jobs while employees in that sector are working more hours.

This story was originally published September 10, 2015 at 1:58 PM with the headline "Fresno, Valley economic index stays in positive territory."