An economist says the massive recall of eggs produced by two Iowa poultry plants will have a negative impact on other related industries in Iowa, but there will likely be a fast recovery. Ernie Goss, an economist at Creighton University, says the state’s economy overall is continuing to grow and strengthen as it pulls out of the recession.

Goss says Creighton’s August survey of supply managers and business leaders in Iowa and eight other states shows promising results. “For Iowa, it’s the 8th straight month that we’ve recorded a number above growth neutral,” Goss says. “What I’m expecting for Iowa is growth in the months ahead, although that growth is going to be a bit softer than what we saw earlier in the year. We’re seeing a bit of a slowdown but it’s still growth and we’re seeing a bit more inflationary pressure than what we’re seeing at the national level.”

Goss says the negative nationwide publicity about the recall of a half-billion eggs, linked to some 1,500 suspected salmonella cases, will undoubtedly spill over into other parts of Iowa’s ag-based economy. “It’s certainly going to have some impact for the food processing industry, those companies and industries connected to that, but overall, we’re still going to see growth ahead,” Goss says.

“A lot is going to depend on the value of the dollar. If we see a weaker dollar, that bodes well for the agricultural sector.” Goss says he’s seeing “very healthy growth” in Iowa’s durable goods manufacturing sector, which he says has more than offset weaker conditions among nondurable goods producers, especially food producers.