The Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, fell in August but remained above growth neutral for the 27th straight month. The index, which ranges between 0 and 100 with 50.0 representing growth neutral, dropped to a solid 55.5 in August from July's 59.8.
"Creighton's monthly survey results indicate the region continues to add manufacturing activity at a solid pace — with significant but declining inflationary pressures. Supply chain disruptions eased further in August, according to supply managers," said Ernie Goss, PhD, director of Creighton University's Economic Forecasting Group. According to the results, on average manufacturing supply managers expect a raise of only 3.2% at their next review. This is down from 3.5% recorded last month.
Employment expanded for the month. Approximately one-fourth of supply managers named labor shortages as their firm's greatest 2022 challenge.
The Kansas Business Conditions Index for August declined to 54.8 from July's 56.5. According to Goss, "Durable goods producers, including machinery manufacturers, are reporting solid growth. Non-durable goods producers, including food processors, are reporting healthy growth. USBLS data indicate that average hourly manufacturing wages have expanded by a strong 11.3% over the past 12 months."
