Economic report says inflation is hurting success

Inflation is starting to whittle away at the success of Iowa’s economy, but the new monthly survey of supply managers and business leaders statewide shows the upswing continuing. Creighton University economist Ernie Goss says overall, Iowa’s numbers look very good.Goss says industries like insurance, health care and heavy manufacturing all look strong, although there’s concern about the Maytag strike, and he says there was a slight pull-back in food processing. While the Maytag strike brought a direct loss of more than 15-hundred jobs, Goss says another 15-hundred “spillover” jobs will be lost if the strike is continues. He says that could dampen growth in an otherwise robust state economy. The monthly survey covers Iowa and eight other Midwestern states, which he says is seeing an overall economic boost, with employment numbers on the rise.Much growth is being seen in the tourism, leisure and hospitality industries as more people take family and business trips. Goss says more people are traveling regionally and locally, not so much long-distance and internationally, which he says is good news for the regional economy. Iowa’s job growth for the first half of 2004 has been just over one-percent from last year — and Goss expects job growth for the second half of 2004 to match that pace.