Utah purchasing managers reported slower business conditions in March as new orders dipped slightly from February.
The state's economic index declined 2 percent from a "solid" 56.2 in February to 54.2 in March, said Ernie Goss, an economics professor at Creighton University in Omaha, who tracks the economies of Utah, Colorado and Wyoming via the Mountain States Business Conditions Survey.
An index above 50 indicates growth while below 50 suggests a contracting economy.
New orders remained somewhat weak in Utah last month while export orders showed a slight upturn. Goss said Utah's economic performance remains slightly better than the national average, mainly due to higher energy prices, and that this trend is likely to continue.
"However, the trend may be somewhat dampened by inflationary pressures," said Goss, noting that the Utah inflation index, which measures prices that purchasers paid for raw materials, moved up 6.4 percent in March to 72.2. Production also remained strong last month at 61.1.
Overall, the three states were showing signs of an economic slowdown last month as new jobs and export orders both dipped. March's 50.8 index was down from 54.5 in February, the lowest overall Mountain States Index since February 2000.
Until recently, the region had not experienced the slowdown evident in the rest of the nation, Goss said. "However, the March survey indicates that the region is now joining the rest of the nation with a clear pullback in economic activity."
Since the March survey indicates a slowdown in new hiring in the region, Goss said he expects to see a slight rise in unemployment in coming months across the three states.
Goss surveys the three states using the same criteria as the National Association of Purchasing Management, whose monthly poll, first implemented in 1931, is seen as a leading economic indicator.
That group reported Monday that U.S. manufacturing declined for the eighth consecutive month in March, but the rate of decline had slowed, and the overall national economy now appears to be growing slightly.
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