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Zions Bank Small Business index climbs in Idaho
Sandra Forester - Idaho Statesman
Published: 11/11/09

The Zions Bank Small Business Index for Idaho registered 78.6 in October, up from a revised 73.6 in September, according a report released Wednesday.

The Index measures conditions for the Idaho small business owner or manager. A higher index number is linked to more favorable business conditions. The calendar year 1997 is the index’s baseline of 100.

The Idaho unemployment rate — the most heavily weighted component of the Zions Bank Small Business Index — was estimated at 8.9 percent for October, up slightly from the 8.8 percent in September. A higher state unemployment rate is a positive for the Index as it implies greater labor availability for Idaho’s small businesses.

However employment declines, leading to slower income creation and softer retail spending, have a negative impact on small businesses, and therefore, the index.

The latest 12-month decline in Idaho employment estimated at 32,700 jobs, down 5.0 percent, compares to a loss of 36,800 jobs in the prior year-over-year period.

Zions economic consultant Jeff Thredgold, owner of Thredgold Economic Associates, said the U.S. economy is finally growing again, a requirement for the Idaho economy and the small business sector to return to growth in 2010.

“While the return to growth is obviously a positive development, it does not suggest that problems with housing, commercial real estate, rising unemployment and continuing job losses are behind us,” Thredgold said.

“The U.S. economy is not off to the races,” he said. “The economy is expected to maintain a modest growth pace during the fourth quarter, as well as during 2010 and 2011. A key to sustainable growth will be how the private sector rebounds — consumers and businesses — with the government then, hopefully, reining in its enormous expansionist ambitions.”