An economist who takes the pulse of the region’s economy every month says it’s not as good as it could be. Economist Ernie Goss says November’s beginning on a weak note. The economist surveys supply managers and business leaders in Iowa and eight other states and he says this time around it was “fairly good” but down to the lowest level since April 2003 and consistent with national numbers out this (Wednesday) he says were down significantly from this time last year.
Goss says he has no question what’s driving the slowdown in the economy, nationally and regionally. The Federal Reserve raised short-term interest rates 17 times and Goss says while they hoped to ease inflationary pressures, they’re causing more of a slowdown in the economy than they’d intended and that includes the economy of Iowa.
While he calls them still positive, Goss says Iowa’s numbers “are much less positive than what we saw earlier in the year and what we saw last year at this time.” While he doesn’t survey agribusiness, Goss reports the economy’s feeling effects across the board from high commodity prices this fall.
He surveys businesses that sell to the farm sector, and says things look good for them. Goss notes wheat and corn prices both are very high right now, as are prices for beef and pork, and it’ll all be good for farm income. In turn, he says it’s a good year for the makers of farm implements like Iowa’s Deere and Company factories.