Reports provide snapshot of a slumping economy
BUSINESS RECORD STAFF Sep 2, 2015 | 4:12 pm
1 min read time
347 wordsAll Latest News, Economic DevelopmentU.S. private employers added fewer than expected workers in August, but the labor market momentum likely remains strong enough for the Federal Reserve to consider an interest rate hike this year, Reuters reported.
However, two additional surveys reflecting the Midwest farm economy show concern about lower commodity prices and less income for farmers.
The ADP National Employment Report today showed private payrolls increased 190,000 last month. While that was below economists’ expectations of a gain of 201,000 jobs, it was a step up from the 177,000 positions created in July. The report, which is jointly developed with Moody’s Analytics, was published ahead of the government’s more comprehensive employment report to be released on Friday.
According to a separate Reuters survey of economists, nonfarm payrolls likely increased by 220,000 jobs in August after rising 215,000 in July. There is, however, a risk of a weaker number as the first print of August payrolls has tended to be weaker in the last several years before being revised higher.
In the Midwest, a nine-state economic indicator points to slow or no economic growth for the next three to six months for the region, according to the Creighton University Mid-America Business Conditions Index. The August Business Conditions Index, which is a 100-point scale, declined to 49.6 from July’s 50.6. The regional index is pointing to weak, and potentially negative, growth through the fourth quarter of 2015. Indexes over the past several months have pointed to slow or no economic growth over the next three to six months for the region. However, five of the nine states had overall indexes above growth-neutral, Creighton reported.
Iowa farmers, meanwhile, are bracing for another tough year. According to the latest Agri-Pulse Farm Opinion Poll, farmers plan to cut back on cash rent, fertilizer and farm equipment in 2015-16. However, farmers continue to make investments in conservation to improve environmental performance, the survey found. The poll was conducted Aug. 17-24 and sponsored by Agri-Pulse and the Iowa Soybean Association. Slightly over 84 percent of the 153 poll respondents said they expect their farm income to be lower than 2014.