THE MONTHLY SURVEY OF SUPPLY MANAGERS IN IOWA AND EIGHT OTHER MIDWESTERN STATES SHOWS BOTH THE STATE AND REGIONAL ECONOMIES TOOK DOWNTURNS DURING JULY.
THE SURVEY SHOWS THE MIDWEST ECONOMY DROPPED FROM 50-POINT-8 IN JUNE TO 46-POINT-1 IN JULY,
CREIGHTON UNIVERSITY ECONOMIST ERNIE GOSS SAYS IT’S A WARNING SIGN IN THE MONTHS AHEAD, AS THE OVERALL BUSINESS CONDITIONS INDEX INDICATES A SIGNIFICANT SLOWDOWN IS LOOMING IN THE MIDWESTERN MANUFACTURING SECTOR.
NUM1 OC….OF MANUFACTURING :14
THE INDEX IS MEASURED ON A ZERO-TO-100 SCALE, WITH 50 BEING GROWTH NEUTRAL.
IOWA’S ECONOMY FELL MUCH FURTHER THAN THE REGION’S, FROM 55-POINT-4 IN JUNE TO 46 IN JULY.
GOSS EXPECTS WHAT HE’S CALLING “A ROLLING RECESSION” TO IMPACT CERTAIN SECTORS OF THE ECONOMY, ESPECIALLY COMMERCIAL REAL ESTATE AND MANUFACTURING.
NUM2 OC….RIGHT NOW :15
THE OVERALL INDEX READING FOR THE REGION WAS THE LOWEST SINCE THE START OF THE PANDEMIC IN MAY OF 2020,
GOSS SAYS. ONLY ABOUT ONE IN FIVE SUPPLY MANAGERS REPORTED JOB GAINS IN JULY AS IT REMAINS CHALLENGING TO FIND AND HIRE QUALIFIED WORKERS DUE TO LOW UNEMPLOYMENT RATES AND WHAT GOSS CALLS “LABOR HOARDING.”
