Report: Midwest economic index drops in September
Omaha, Neb. ? A monthly economic survey index for nine Midwestern and Plains dropped in September, suggesting slowing economic growth in the months ahead.
A survey report issued Wednesday says the overall Mid-America Business Conditions Index dropped nearly three percentage points to 54.3, from 57.2 the previous month.
Creighton University economist Ernie Goss, who oversees the survey, says a drop in grain prices over the past year has led to a pullback in economic activity for the heavily agrarian region.
The survey results from supply managers are compiled into a collection of indexes ranging from zero to 100. Survey organizers say any score above 50 suggests economic growth, while a score below that suggests decline.
The survey covers Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
In Kansas, the overall index expanded to a regional high of 69.7, from 63.8 in August. Components were new orders at 77.9, production or sales at 81.9, delivery lead time at 63.9, employment at 58.1, and inventories at 66.8. “Growth among nondurable goods producers and value added services firms in the state more than offset weaker numbers from durable goods manufacturers,” Goss said. “Construction activity in Kansas continues to advance at a healthy pace.” Average weekly wages expanded by 3.1 percent over the last year, Goss said.