Iowa’s business conditions improve slightly
Iowa’s Business Conditions Index from Creighton University rose slightly in October, to 48.9 from 48 in September.
Anything over 50 on the 100-point index is considered an indication of expansion. The monthly survey of supply managers found new orders at 39.4, production or sales at 47.8, delivery lead time at 55.8, employment at 51.2, and inventories at 50.2.
“Metal producers and machinery manufacturers experienced downturns in economic activity,” said Creighton economist Ernie Goss. “Additionally, food processors recorded cutbacks in business activity.” Manufacturing jobs were down by 1.9 percent, but nonfarm jobs were up by 1.9 percent.
The overall Mid-America Business Conditions Index for the nine-state region fell to 43.8 from September’s 45.5. This is the fourth straight month the index was below growth-neutral.
Manufacturing is hurting across the area. “Even with oil prices hovering around $50 per barrel for the month, weakness among manufacturers linked to agriculture and energy continue to weigh on regional economic conditions,” Goss said. “Due to the heavy dependence of the region on these two sectors, I expect the regional economy to continue to underperform the national economy. Despite the decline in manufacturing, the nonmanufacturing sector of the regional economy is expanding, albeit at a slow pace.”
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