Despite efforts by the Federal Reserve Board to slow down growth, one industry analyst says the Midwestern economy is bustling right along. Creighton University economist Dr. Ernie Goss says his monthly survey of purchasing managers in Iowa and eight other regional states looks very good.Dr. Goss predicts the Fed will make a full half-point interest rate hike at its next meeting May 16th instead of the quarter-point increases like the previous five. He says the interest rate hikes aren’t hurting Iowa’s purchasing managers, but the oil price hikes -are- taking effect.Despite those difficulties attributed to the gas prices, Goss says Iowa’s economy is soaring into its highest numbers since October of 1994. He says the Creighton survey indicates a better year ahead for farmers. He says purchasing managers are reporting better activity among farmers who have money to spend from their federal crop payments.He predicts farm incomes and commodity prices will be slightly better in the months ahead, but still won’t be equal to prosperous years in the recent past.
