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Midwest economy: August state-by-state glance

September 2, 2014
Associated Press

The Institute for Supply Management, formerly the Purchasing Management Association, began formally surveying its membership in 1931 to gauge business conditions.

The Creighton Economic Forecasting Group uses the same methodology as the national survey to consult supply managers and business leaders. Creighton University economics professor Ernie Goss oversees the report.

The overall index ranges between 0 and 100. Growth neutral is 50, and a figure greater than 50 indicates an expanding economy over the next three to six months.

Here are the state-by-state results for August:

Arkansas: The state's overall index sank to 45.6 in August from 53.1 in July. Components of the index were new orders at 41.4, production or sales at 41.4, delivery lead time at 60.1, inventories at 40.5, and employment at 44.6. "Economic growth will slow for the second half of 2014 for the state, based on our surveys," Goss said. Since the national recovery began in July 2009, the manufacturing sector in Arkansas has lost 6,000 more jobs for an additional 3.7 percent loss, he said. "However, for 2014, the state has begun to recover a share of the durable-goods manufacturing jobs that were lost," Goss said.

Iowa: Iowa's overall index fell to a still solid 58.3 from 63.0 in July. Components of the index were new orders at 57.8, production or sales at 56.9, delivery lead time at 62.2, employment at 60.0 and inventories at 54.5. Goss said Iowa's economic growth was expected to remain healthy for the second half of 2014, based on survey results. Since the national recovery began in July 2009, the manufacturing sector in Iowa added almost 18,000 jobs, for a gain of 9 percent. "However, for 2014, the state's manufacturing sector has added jobs at a somewhat slower pace," he said.

Kansas: The overall index for August jumped to 63.8 from 57.2 in July. Components of the index were new orders at 77.0, production or sales at 76.3, delivery lead time at 52.8, employment at 53.6 and inventories at 58.5. "Economic growth will remain positive for the second half of 2014 for Kansas, based on our surveys over the last several months," Goss said. Since the national recovery began in July 2009, the manufacturing sector in Kansas lost an additional 2,200 jobs, a loss of 1.4 percent. "For 2014, the state's durable-goods manufacturers have continued to shed jobs even as nondurable-goods producers have expanded jobs," said Goss.

Minnesota: The August survey results mark the 21st straight month that Minnesota's overall index has been above growth neutral. The index rose to a regional high of 66.9 in August, compared with July's 66.4. Components of the index were new orders at 72.1, production or sales at 72.3, delivery lead time at 61.1, inventories at 69.2 and employment at 59.8. "Economic growth will remain healthy for the second half of 2014 for Minnesota, based on our surveys over the last several months," Goss said. Since the national recovery began in July 2009, the manufacturing sector in Minnesota added about 22,000 jobs for a gain of 7.4 percent. For 2014, Goss said, manufacturers have continued to add jobs at a healthy pace.

Missouri: The August index rose slightly, to 59.2 from 59.0 in July. Components of the index were new orders at 60.9, production or sales at 65.0, delivery lead time at 58.9, inventories at 55.9 and employment at 55.4. Goss said Missouri's economic growth will remain healthy for the second half of 2014, based on the past several months' survey results. Since the national recovery began in July 2009, the manufacturing sector in Missouri added almost 6,000 jobs, for a gain of 2.2 percent. So far this year, the state's manufacturers have added jobs at a much faster pace, he said.

Nebraska: For the eighth straight month, Nebraska's overall index remained above growth neutral. It dropped to 54.8 in August, compared with 55.5 in July. Components of the index for August were new orders at 59.2, production or sales at 61.1, delivery lead time at 54.2, inventories at 53.6, and employment at 46.2. "Economic growth will remain positive for the second half of 2014 for the state, based on our surveys over the last several months," Goss said. Since the national recovery began in July 2009, manufacturers in Nebraska have added about 5,400 jobs for a gain of 5.9 percent. "However, for 2014, the state's durable-goods manufacturing firms have added no jobs," he said.

North Dakota: The state's overall index in August hit 60.7, compared with 57.3 in July. Components of the overall index were new orders at 60.3, production or sales at 58.9, delivery lead time at 66.1, employment at 59.4 and inventories at 59.1. "Economic growth in North Dakota will remain healthy for the second half of 2014, based on our surveys over the last several months," Goss said. Since the national recovery began in July 2009, the manufacturing sector in North Dakota added about 2,000 jobs for an 8.5 percent job gain. However, so far this year manufacturers in North Dakota have added no jobs, he said.

Oklahoma: The state's overall index continues to point to improving economic conditions in the months ahead. The index for August fell to a still solid 54.0 from July's 54.9. Components of the index were new orders at 55.3, production or sales at 56.4, delivery lead time at 47.0, inventories at 65.8 and employment at 45.5. "Economic growth will remain positive for the second half of 2014 for the state, based on our surveys over the last several months," Goss said. Manufacturers have added almost 16,000 jobs since the national recovery began in July 2009, for a gain of 12.6 percent, Goss said. Until August, he said, the manufacturing sector had been adding jobs at a healthy pace.

South Dakota: After moving below growth neutral in November 2012, South Dakota's overall index has remained above growth neutral. The index fell to 58.5 in August from 61.0 in July. Components of the overall index were new orders at 57.9, production or sales at 75.2, delivery lead time at 58.0, inventories at 54.5 and employment at 47.0. "Economic growth will remain healthy for the second half of 2014 for the state, based on our surveys over the last several months," Goss said. Since the national recovery began in July 2009, the manufacturing sector in South Dakota added about 6,100 jobs, for a 16.7 percent job gain. Until August, the state's manufacturing sector had been adding jobs at a healthy pace, he said.

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Online:

Creighton Economic Forecasting Group: http: //www.outlook-economic.com

 
 

 

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