The Creighton University Mid-America Business Conditions Index fell below growth-neutral for a second straight month, but the overall index covering a nine-state region from Minnesota to Arkansas, did increase to 49.5 in August from 46.1 in July. The index ranges from 0 to 100, with a score of 50 representing growth-neutral.

“The Mid-America regional manufacturing economy is definitely losing momentum,” Ernie Goss, the Jack A. MacAllister chair in regional economics at Creighton, said in a news release. “Government data indicate that the regional manufacturing economy has lost jobs for the last three months.”

Iowa’s overall August index advanced to 47.9 from June’s 46.0. New orders in the state increased to 46.6 in August from 43.1 in July, production or sales rose to 46.3 from 40.4, delivery lead time improved to 48.4 from 48.0, employment advanced to 48.7 from 48.2 and inventories fell to 49.5 from 50.2.

According to U.S. International Trade Association data, Iowa’s manufacturing exports expanded from $7.7 billion for the first half of 2022 to $8.6 billion for the same period in 2023, representing a growth rate of 11.8%. The state’s leading manufacturing export, machinery, increased by 28.5 % from 2022 to 2023.

While the regional hiring gauge remained below growth neutral, it improved to 47.7 in August from 45.6 in July. Seasonally adjusted manufacturing employment in the region has decreased for three consecutive months, according to U.S. Bureau of Labor Statistics data.

“For the first half of 2023, Creighton’s monthly survey indicated steady employment growth with levels maintained due to manufacturers’ labor hoarding,” Goss said. “However, employment readings over the past several months signal layoffs in the region.”

The wholesale inflation gauge rose to 63.7 from July’s 52.2, and supply managers expect wholesale prices for the products and services their firms purchase to increase by about 5% over the next 12 months.

The confidence index, which looks ahead six months, dropped to 26.3 in August from July’s 32.6.