Omaha, Nebraska — Economic growth slowed in Iowa and in the Midwest during August, according to the latest survey of supply managers in the nine states.
Creighton University economist Ernie Goss says while the numbers slipped on the Business Conditions Index at the state and regional levels, both remained above growth neutral for the 27th straight month. Still, he says the forecast remains cloudy.
Hiring during August dropped compared to July, while inflation rates remain punishingly high. Goss says they asked supply managers to identify the biggest challenges moving forward in 2022.
Supply chain issues are continuing to disrupt the flow of goods, and while gasoline prices have dropped, prices for groceries and most other goods and services remain very high.
The survey finds durable goods manufacturers in Iowa, including metal producers, are reporting solid growth, while Goss says non-durable goods producers, including food processors, reported healthy expansions. Looking ahead six months, economic optimism increased to a very weak 32.2 from 26.8 in July, that’s on a scale of zero to 100. Goss says confidence levels for 2022 are the worst since the 2008-09 recession.
