The February Creighton University Mid-America Business Conditions Index, a leading economic indicator for a nine-state region that includes Kansas and Oklahoma, sank for the month; but remained above growth neutral.
This is the third straight month the overall reading has remained above growth neutral 50.0. The Business Conditions Index, which ranges between 0 and 100, tumbled to 52.8 from January's 57.2, its highest level since March 2019. Creighton economist Ernie Goss, PhD says this month's softer reading plus the mounting negative impacts from the coronavirus should concern policymakers regarding the strength of the economy.
"Fully 40% of supply managers reported negative impacts from the coronavirus," said Goss. "The coronavirus forced 27% of firms to cease, or reduce international buying."
In Kansas the Business Conditions Index for February declined to 54.7 from January's 58.4.
"Over the last 12 months, Kansas manufacturing employment growth ranked number five in the nine-state region expanding by 0.19%," said Goss, 'while state manufacturing wage growth ranked number four in the region growing by 5.5%."
