Regional Economy Could be in Pullback

Creighton’s monthly survey of supply managers and procurement experts in nine Mid-America states indicates economic growth is in a range indicating the regional economy is experiencing pullbacks in economic activity with still too much inflationary pressures. The overall index from Creighton’s monthly survey of bank CEOs in rural areas of 10 states dropped below growth neutral for third straight month with rising farmland prices and falling farm equipment sales.

November 2023 survey highlights:
-Overall index drops to its lowest level since June 2020, or the early days of the pandemic.
-Overall index is in a range indicating recessionary conditions in the regional manufacturing sector.
-U.S. Bureau of Labor Statistics (BLS) data show the region has lost 12,000 manufacturing jobs since April of this year.
-Survey results indicate jobs losses for the month combined with a significant upturn in inflationary pressures.
-Approximately 6 of 10 supply managers named the looming recession as the top threat to their firm’s business activity.
-According to BLS data, the regional average manufacturing wage rate climbed by 3.4% over the past 12 months or slightly above the 3.2% increase in consumer prices.
-As reported by one supply manager, “Rising prices and labor costs continue to plague our business even though we continue to do more with less.”