An index that measures business conditions in the state's manufacturing sector remained in positive territory for the fifth straight month, suggesting that part of the economy is in growth mode.

The Business Conditions Index for Colorado rose to a reading of 58.8 in February from 56.2 in January.

The Goss Institute for Economic Research in Denver conducts the monthly survey. An index reading of 50 is considered to be growth neutral, while a mark above that level is regarded as healthy.

The index, whose findings are based on a survey of supply managers in the state, found that conditions improved in four of the five categories measured last month. Findings were released this week.

New orders climbed to a reading of 61.9 in February from 59.6 in January. That marked the first time new orders advanced on a month-to-month basis since the October 2009 to November 2009 period.

Production or sales improved to 62.6 last month from 57.9 in January, and a reading of 58.9 in December.

Delivery lead-time increased to 56.1 in February from 53.8 in January. That also marked the first month-to-month gain since the October 2009 to November 2009 period.

Inventories went up to 58.5 in February from 55.6 in January. Employment was the lone category to post a decrease last month as the reading eased to 54.9 from 55.7 in January.

The manufacturing sector employs about 2,700 people in Mesa County, based on figures from the Colorado Department of Labor and Employment, and roughly 128,000 in state as of December 2009.

That is down from about 140,000 in December 2008. Ernest Goss, director of the Goss Institute, called for slight “job gains” in the manufacturing sector in the second quarter and “very modest overall job growth” in the same period of this year.

In the three-state mountain region of Colorado, Wyoming and Utah business conditions improved to a reading of 58.6 in February from 55.6 in January. The latest reading was the fifth consecutive month the three-state index was in positive territory.

The last time the three-state index was below a reading of 50 was in September when it measured 48.5.

Goss said the string of positive readings suggest “the regional economic rebound that is underway will pick up steam in the months ahead.”

However, he expressed concern that economic problems in Europe could “negatively influence regional growth” because those troubles are pushing the value of the dollar higher.

He added, “This part of the nation depends heavily on exports and commodity prices which likewise suffer from a ‘too strong' dollar.”

Denver Business Journal contributed to this report.