Statewide Iowa — A monthly survey shows the economic pictures for Iowa and the Midwest are darkening, with a few sunny breaks in the clouds. Creighton University economist Ernie Goss says the overall figures for Iowa sank during May, as did the numbers for the nine-state region. Goss says the survey of business leaders and supply managers showed hiring slowed during the past month.
According to the survey, the greatest economic threats for the rest of 2022 include supply chain disruptions, inflationary pressures, higher interest rates and labor shortages.
The inflation index for May rose to 91.7 on a scale of zero to 100, that’s up from 89.7 during April. The survey asked supply managers how much more they expect prices to rise during the second half of the year.
Again, using the zero to 100 scale, Iowa’s overall economic index for May fell to 59.6, dropping significantly from 69.8 in April. Despite that, Goss says both durable and non-durable goods manufacturers in the state are growing at a solid pace with companies linked to the farm economy expanding at a healthy rate. The state’s leisure and hospitality industry has benefited from this healthy growth, but employment in this industry remains 8,300 jobs (5.7%) below pre-pandemic levels.
