(Omaha) — One of KMAland’s leading economic indicators paints a dismal picture of the Midwest economy.
May’s Creighton University Mid-American Business Conditions Index dropped from 52.5 in April to 48.2 in May. It’s the third time in 2024 that the index has fallen below growth neutral, which is 50.0. Creighton University Economics Professor Dr. Ernie Goss says the survey of manufacturers and supply managers in a nine-state region, including Iowa, Nebraska and Missouri was not good for May.
“What’s happening–we’re seeing it in the national numbers, we’re seeing it in the regional numbers across the nation,” said Goss, “they’re bouncing around to below growth neutral or above growth neutral. And, it’s just indicating that the manufacturing economy nationwide, and in the region, and in the states, is moving down–so, it was not good.”
Goss says one of the major factors behind May’s index mark is disappointing employment numbers. Though May’s employment index increased to 43.7 from April’s 40.0, Goss says it’s the fifth straight month the region’s employment index for a fifth straight month.
“I think we’re in a territory where we’re showing job losses each month,” he said, “but they’re not significant as they could be, not like they saw back in the pandemic. Approximately 33% reporter job losses year over year. That’s certainly not what we like to see.”
He notes Missouri topped in the region in terms of job gains and wage gains last month. The report also indicates supply managers remain pessimistic regarding the economic outlook, with approximately 42% expecting slower economic growth for the remainder of 2024.
