Survey: Manufacturers find cause for optimism

Optimism in Minnesota's factory sector jumped in February, according to the Creighton University survey of supply managers.

Creighton's Minnesota Business Conditions Index climbed to 64 in February from about 58 in January. Scores above 50 indicate economic expansion.

A pick-up in business for durable goods manufacturers, including medical equipment makers, offset a pullback for food processors last month, Creighton University economist Ernie Goss said.

Despite Minnesota factory owners' optimism about the economy in the coming months, they're still not adding lots of full-time workers to payrolls, Goss said. Instead, they're increasing output with the help of temporary workers. That might continue given uncertainty about the global economy, he added.

The broader Mid-America index, which covers nine Midwest states, dipped slightly in February. About a third of the supply managers surveyed in those states said that recent bad weather had crimped sales.

"That has a lot to do with transportation -- getting goods in, the raw materials and supplies in, and getting sales out," Goss said. "Also, of course the increase in fuel prices -- propane and natural gas prices -- had some impacts on the overall business conditions."