Omaha, Nebraska — Iowa’s economy saw a slight gain during October, while the Midwestern economy dipped, according to the monthly survey of business leaders and supply managers across the nine-state region.
Creighton University economist Ernie Goss says the Business Conditions Index, a leading economic indicator for the Midwest, is measured on a zero-to-100 scale with 50 being growth neutral. The region’s economy slipped a full point, from 52-point-5 in September to 51-point-5 in October.
Iowa’s economy is just below growth neutral, meaning it’s shrinking, but did show a glimmer of growth, rising from 48-point-5 in September to 49-even in October. Goss says the survey quizzed supply managers on what they saw as the largest challenge facing the Midwestern economy in the months ahead.
The regional hiring gauge sank below growth neutral during October, as job losses outpaced new hires.
According to U.S. Bureau of Statistics data, Goss says Iowa’s manufacturing sector boosted employment by 0.9% over the past year, with the average hourly wage rate expanding by 2.3%, well below the 3.7% increase in consumer prices.
