A monthly survey shows the Midwest economy has taken a nose dive.
Creighton University economist Ernie Goss compiles the Mid-America Business Conditions Index, which involves a survey of supply managers in Iowa and eight other Midwest and Plains states. The results are compiled into indexes ranging from zero to 100. Any score above 50 suggests economic growth.
“The overall index declined to 47.6, down from 50.1 in June. That’s not good…things are moving in the wrong direction,” Goss said. The overall index had remained above growth neutral for five straight months before this report.
Goss says more than one-third of businesses cite global economic conditions as the greatest factor weighing on company sales. Nearly 21 percent named weakness in the farm economy as the biggest factor diminishing sales. Goss notes that Iowa has lost almost 7,000 manufacturing jobs in the last year and the companies involved are primary linked to agriculture.
The survey covers Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.