University of Oregon's index of economic indicators falls slightly

The latest University of Oregon index of economic indicators showed a half-percent decline from August to September. However, of the eight indicators that comprise the index, three improved: Oregon initial unemployment claims, Oregon weight distance tax and The Oregonian help wanted ads.

U.S. consumer confidence, Oregon residential building permits, U.S. manufacturing orders and the interest rate spread all deteriorated slightly. Oregon nonfarm payrolls were essentially unchanged.

According to U of O, the index was driven by a substantial decline in consumer confidence in the wake of the summer's hurricane activity in the Gulf Coast.

Consumer pessimism likely reflects the sharp rise in energy prices, particularly gasoline, in the face of relatively tepid wage gains, wrote Tim Duy, director of the Oregon Economic Forum and the Department of Economics at U of O. In short, consumers are challenged to maintain purchasing power in the face of rising costs.

Nonfarm payrolls posted a gain of 300 jobs in the second quarter. In contrast, help-wanted ads in The Oregonian gained slightly in September, and initial unemployment claims dropped to their lowest levels since March.

The UO index is based on eight indicators based on those used by The Conference Board, an independent research organization. Those indicators are Oregon initial unemployment claims, residential building permits, help wanted ads, Oregon weight distance tax, total nonfarm payrolls, U.S. consumer confidence, real manufacturers' new orders for non-defense and interest rate spread.

The latest index was released Nov. 3.

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