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Friday, November 21, 2008
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News Detail
National economic trends hitting the Midlands
9/3/2008 12:05:29 PM
By Joe Ruff
WORLD-HERALD STAFF WRITER
Job losses, inflation and weak but positive economic growth in the Midwest last month mirrored the national economy, economist Ernie Goss of Creighton University said.
A regional survey of supply managers and business leaders showed that record farm income and a booming ethanol industry bolstered the nine-state region, including Nebraska and Iowa. But the regional economy has begun to resemble the national economy with weak production and higher unemployment, Goss said.
The MidAmerica Business Conditions Index, a leading economic indicator, dipped slightly to a tepid 51.4 in August from July's 51.5 and June's 50.5.
Rankings of 50 or higher indicate economic growth; anything below 50 indicates contraction.
The employment index advanced in August to 47.5 from July's 41.4, but unemployment rates could continue to increase with significant variations across the nine states, Goss said.
The prices-paid index, which tracks the cost of raw materials and supplies, plunged to 86.7 from July's record high 93.9. Declines in commodity prices have helped, but prices remained significantly above acceptable levels, Goss said.
"We would have to see oil prices dive below $100 per barrel to experience any material relief on the inflation front,'' Goss said.
Other highlights of the survey, which included Arkansas, Kansas, Minnesota, Missouri, North Dakota, Oklahoma and South Dakota:
Economic optimism expanded to 50.0 from July's 37.8 and June's 35.1.
The gauge for new export orders was 54.3, down from July's 55.4, reflecting slowing economic growth of trading partners.
Import orders dipped to 55.8, still a strong number, from July's 56.3.
Nebraska's overall index went to 51.2 from 50.8 in July.
Iowa's overall index dropped to a regional low of 40.8 from July's 45.8.
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