The Creighton University Mid-America Business Conditions Index rose to a solid 59.8 from June’s 58.6. A leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, the Business Conditions Index ranges between 0 and 100 with 50.0 representing growth neutral.
Director of Creighton University’s Economic Forecasting Group Ernie Goss says, "Results indicate the region continues to add manufacturing activity at a solid pace, but with significant inflationary pressures ahead." Goss says supply managers reported supply chain disruptions continued to ease in July, yet they remained very pessimistic about the economy overall.
Despite healthy growth in monthly economic activity for almost two years, manufacturers in the region have added jobs at only a modest pace. That said, the employment index was above growth neutral for the seventh straight month to 58.7, down from 59.7 in June. Except for Arkansas and South Dakota, non-farm employment levels, seasonally adjusted, remain below pre-pandemic levels for all states in the region.
The Kansas Business Conditions Index for July declined to a solid 56.5 from June’s 58.6. Goss says Kansas durable goods producers, including machinery manufacturers, are reporting solid growth, but with current employment below pre-pandemic levels. Kansas non-durable goods producers, including food processors, are reporting healthy growth with current employment exceeding pre-pandemic levels.