July survey suggests economic slowdown for Midwest

Published 10:21 am Monday, August 3, 2015

OMAHA, Neb. — Slumping numbers in a July survey suggest there will be slow to no economic growth over the next three to six months in nine Midwest and Plains states, according to a report issued Monday.

The overall Mid-America Business Conditions Index dropped to 50.6 in July from 53.0 in June, the survey said.

“Businesses tied to agriculture and energy continue to report pullbacks in economic activity, and this is spilling over into the broader regional economy,” said Creighton University economist Ernie Goss, who oversees the survey.

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The survey results from supply managers are compiled into a collection of indexes ranging from zero to 100. Survey organizers say any score above 50 suggests economic growth, while a score below that suggests decline. The survey covers Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

Looking ahead six months, economic optimism, as reflected by the July business confidence index, plummeted to 52.4 from June’s 59.9.

“Sinking agriculture and energy commodity prices pushed supply managers’ expectations of future economic conditions lower for the month,” Goss said.