The Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, remained well above growth neutral for July. The Index ranges from 0-100, with 50 representing growth neutral. The overall index dipped to a still strong 73.1 from June’s 73.5.
Ernie Goss, PhD, director of Creighton University’s Economic Forecasting Group said, "Creighton’s monthly survey results indicate the region is adding manufacturing business activity at a very healthy pace, and that regional growth will remain strong. Absent supply bottlenecks and labor shortages, that growth would be even stronger.”
The Business Confidence Index, one part of the overall Index, slumped to 53.6 from June’s 60.8 and May’s very strong 88.6.
“Supply bottlenecks, rapidly rising prices and labor shortages pushed economic confidence among manufacturing supply managers significantly lower for the month,” said Goss.
The Kansas Business Conditions Index for July declined to 73.3 from 76.9 in June. Goss said according to the U.S. Bureau of Labor Statistics, average hourly wages for manufacturing production workers in Kansas declined 0.9% over the past 12 months. Among the nine Mid-America states, this growth ranked ninth, or last.