Survey suggests slower Midwest, Plains recovery
An October survey of supply managers in nine Midwestern and Plains states suggests that the regional economy will continue to grow, but at a slower pace.
The Mid-America Business Conditions Index dropped for the fourth time in the past five months, to 52.3 last month from 56.3 in September.
The new figure is the lowest for the region since December.
The survey and report use a collection of indexes ranging from zero to 100. Organizers say any score above 50 suggests economic growth in the next three to six months, while a score below 50 suggests a contracting economy.
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States in the survey are Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
For a fourth consecutive month Minnesota's leading economic indicator, based on a survey of supply managers, declined thus pointing to somewhat slower but still positive growth in the months ahead. The state's Business Conditions Index plummeted to 52.8 from September's 58.9. October represented the 15th straight month that Minnesota's index was above growth neutral.
Components of the overall index for October were new orders at 51.0 production, or sales at 57.8, delivery lead time at 49.9, inventories at 53.4, and employment at 51.7. "After gaining almost 32,000 jobs between December 2009 and May 2010, Minnesota's employment level has remained virtually unchanged since May.
"I expect very modest job gains in the months ahead as durable goods producers benefit from sales abroad," Creighton University Economics Professor Ernie Goss said
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Online: Creighton Economic Forecasting Group
(Copyright 2010 by The Associated Press. All Rights Reserved.)