The January Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, moved above growth neutral for a second straight month. This is the third time in the past four months the overall reading has climbed above growth neutral 50.0.
The Business Conditions Index, which ranges between 0 and 100, rose to a solid 57.2, its highest level since March 2019, and up from December's 50.6. This month's very solid reading, plus January's signing of USMCA and Phase 1 trade agreement with China, bode well for the regional manufacturing economy. However, the survey was conducted before the significant negative outcomes from the coronavirus were reported.
The Kansas Business Conditions Index for January increased to 58.4 from December's 52.1. The monthly survey of supply managers indicated both durable and nondurable goods manufacturers are expanding at a slow but positive pace.
