The Creighton University Mid-America Business Conditions Index for May, a leading economic indicator for a nine-state region stretching from North Dakota to Arkansas, fell from April’s reading. Indices over the past several months are pointing to positive but slow economic growth over the next three to six months for the region.
Ernie Goss, director of Creighton University’s Economic Forecasting Group says the Business Conditions Index slumped from April’s tepid 52.7.
Other states dependent on agriculture are also experiencing slower economic growth. Goss says that growth is likely to move even lower in the months ahead as the strong U.S. dollar slows economic activity even more.
Goss says the regional employment gauge remained in a range indicating slightly negative to stagnant job growth for manufacturing and value-added services firms in the region.
Goss says they are seeing increasing signs of inflationary pressures.
Goss says looking ahead six months, economic optimism, as captured by the May business confidence index, declined to 58.3 from April’s 61.5.
The Creighton Economic Forecasting Group has conducted the monthly survey of supply managers in nine states since 1994 to produce leading economic indicators of the Mid-America economy. States included in the survey are Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
