The monthly survey of the Midwestern economy gives Iowa poor marks for April. Creighton University economist Ernie Goss says the state’s economic indicators were “growth-negative” on his nine-state index. That was somewhat unexpected, though he doesn’t think the drop’s significant to make him concerned about the state’s economy. The greatest decrease category was “inventory,” but Goss says that could mean different things. If businesses cut back inventories because they expect future sales will be low, it’s bad — but if their inventory’s low because of strong sales, it is good. Goss says we’ve reached the end of the benefits that can come from cost-cutting, and will have to see some hiring in the months to come. Though hiring remains flat in the month just ended, Goss says lower oil prices and strong consumer confidence have followed the quick end to U.S. involvement in Iraq, and that also signals continued improvement in the regional economy in the coming months.
