The overall Mid-America Business Conditions Index, covering nine states, rose to its highest level since September at 56.0, up from 55.2 in December. 

“The regional economy continues to expand at a positive pace. However, as in recent months, shortages of skilled workers and international trade tension/tariffs remain an impediment to even stronger growth. More than eight of 10 supply managers reported buying from abroad was an important factor in company success,” said Goss. 

Manufacturing employment continued to grow. “Overall manufacturing employment growth in the region over the past 12 months has been very healthy at 2.4 percent, compared to a lower 2.3 percent for the U.S,” said Goss. “I expect this gap to close in the months ahead as regional job growth slows faster than national manufacturing job growth. Regional job growth for durable goods producers has been approximately three times that of nondurable goods manufacturers over recent months.”