Tags: midAmerica | Economic | Outlook | Brightens

Survey: Mid-America Economic Outlook Brightens

Tuesday, 01 Jun 2010 01:51 PM

The economic outlook for nine U.S. Midwest and South-Central states brightened in May, but European financial troubles could hinder growth in the region, according to a survey of supply managers released on Tuesday.

Creighton University's Business Conditions Index rose last month to 64.2, its highest level in almost four years, from 61.7 in April.

A reading of 50 is considered growth neutral, while readings above that signal expansion over the next three to six months.

"The financial turmoil in Europe is a threat to the economic expansion underway," said Creighton University Economics Professor Ernie Goss in a statement. "It has increased the value of the dollar, which has made U.S. manufactured goods and farm products less competitive abroad."

On the jobs front, the survey's employment index rose above growth neutral for a fifth straight month, climbing to 60.1 in May from 58.4 in April, as 36.7 percent of supply managers said their companies added jobs and only 16.5 percent reported job cuts from April levels.

"There is just too much economic uncertainty right now for firms to hire more aggressively," Goss said. "It is going to take many months before most states in the region recover jobs lost since the recession."

Meanwhile, the survey's prices-paid index, which tracks the cost of raw materials and supplies, slipped to 80.4 in May from 81.2 in April, as supply managers reported "significant price bubbles for commodity prices."

Supply managers were surveyed in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

The Omaha, Neb.-based Creighton Economic Forecasting Group has conducted the monthly survey since 1994, using the same methodology as the national Institute for Supply Management.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Economy
The economic outlook for nine U.S. Midwest and South-Central states brightened in May, but European financial troubles could hinder growth in the region, according to a survey of supply managers released on Tuesday. Creighton University's Business Conditions Index rose...
midAmerica,Economic,Outlook,Brightens
276
2010-51-01
Tuesday, 01 Jun 2010 01:51 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved