A new survey of Iowa’s business leaders and supply managers finds the state’s economy faltered slightly during August, for the second month in a row, but is still seeing solid growth. Creighton University economist Ernie Goss conducts the monthly survey in Iowa and eight other Midwest states. Goss says Iowa’s still in a “good growth range” for the future, though he says looming potential troubles include higher prices for gas, oil, natural gas, and rising interest rates. Parts of Iowa saw gasoline prices jump about three-dollars this week for the first time. Goss says many people are grumbling about the gas prices, but that’s not the true troublemaker. While gas prices are having a negative impact on the economy, Goss says what will make matters worse is the rising natural gas prices, as they’re up 50 to 75-percent from a year ago. Natural gas is used to heat many homes and businesses and is important in the agricultural industry as well, so Goss says that’s where the real impact will be in the months ahead. Hurricane Katrina has devastated New Orleans, which is where much of Iowa’s grain is shipped before being exported around the world. Goss sees a financial storm brewing with that situation, but he says the clouds have a silver lining. While there will be a negative impact on the export of farm commodities in the short and near terms, he sees benefits longterm as New Orleans’ shipping ports are rebuilt with new, better technology. As for the state’s employment situation, Goss says “Iowa continues to add jobs at a very healthy pace with very few sectors showing negative fallouts from higher energy prices. Insurance and durable goods manufacturers reported robust results for August, while non-durable goods manufacturers detailed weaker economic conditions.”
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