April 24, 2014

Creighton economist sees economic hit to Iowa with slowing ag equipment sales

Iowa is among three “shining stars” in the Midwest, according to the latest monthly economic survey of business leaders and supply managers in nine states. Creighton University economist Ernie Goss says Iowa, North Dakota and Oklahoma are all energy-producing states and their economies are prospering.

Goss predicts Iowa and some of the other farm states in the region may soon take a big hit. “Agricultural equipment sales are still doing reasonably well but I don’t see that can hold up,” Goss says. “That’s going to come down and punch some of the growth we’re now seeing in South Dakota, Nebraska and Iowa, pulling that down, Kansas down as well.”

Goss says there is some weakness in non-durable goods like food production while biofuels and ethanol production are not holding up. “The 2012 drought has yet to put a dent in business activity for agriculture equipment manufacturers in Iowa, but has negatively influenced retail sales,” Goss says.