The monthly assessment of business conditions in a nine-state region from Minnesota to Arkansas saw a modest decline in August, indicating slower growth in future months. Ernie Goss, Director of Creighton University’s Economic Forecasting Group, says that since the Business Conditions Index hit a record-setting low in April of 2020, this leading economic indicator had remained above growth neutral (50) for 15 of the past 16 months. “Creighton’s monthly survey results indicate the region is adding manufacturing business activity at a healthy pace, and that regional growth will remain positive, but somewhat slower,” Goss says. “Supply chain bottlenecks and labor shortages remain obstacles to growth.” An estimated 94 percent of supply chain managers report bottlenecks for the month with half saying there were significant supply disruptions. Even with healthy job growth for August, many firms continue to report difficulties in finding and hiring new workers. For Iowa, the Business Conditions Index for August climbed to 68.2 from 67.9 in July, with anything greater than 50 on the rating scale of zero to 100 indicating an expansionary economy over the next three months. Only one other state saw an overall score increase, with Missouri up to 75.2 from 71.3 in July. Arkansas, Kansas, Minnesota, Nebraska and the Dakotas all saw their numbers drop, resulting in the lower average for the entire region from 73.1 in July to 68.9 in August.
