For the 10th consecutive month, the San Joaquin Valley Business Conditions Index remained above the 50.0 threshold, pointing to economic growth for the next three to six months. The overall September index grew to 58.5 from 57.6 in August.
About 28 percent of survey participants indicated the drought was having a negative impact on their business operations. This is down from last month when 35.3 reported the drought was negatively influencing their firm.
“Despite the severity of the drought, it appears that its negative impact on the regional economy remains significant but has diminished a bit from last month. Even with drought conditions, business activity was healthy for the month, especially for non-durable goods manufacturers including food processors,” said Dr. Ernie Goss, research faculty with Fresno State’s Craig School of Business.
The index, produced by the Craig School, is a leading economic indicator from a survey of individuals making company purchasing decisions in the counties of Madera, Fresno, Kings and Tulare. The index uses the same methodology as that of the national Institute for Supply Management...