Statewide, Iowa – Inflation is rising, trade numbers are falling, and the overall Midwestern economy is slowing, according to a monthly survey of supply managers in Iowa and eight other states.
Creighton University economist Ernie Goss says a score of 50 is considered growth neutral on the zero-to-100 scale, and the region may soon be seeing the numbers contract.
The regional manufacturing employment score for June stayed below growth neutral, while imports are spiraling, down to a score of just 30 on the 0-to-100 scale, which Goss says is a real concern.
Manufacturers stocked up on supplies earlier in the year, before the threatened tariffs were implemented and now, Goss says, trade in both directions is drying up. Goss says he’s also worried about housing, which is a key indicator of an economy’s health.
Iowa’s overall score for June fell further below growth neutral to 48, a drop of nearly two full points since May. Goss says a federal report shows Iowa’s manufacturing sector exported $5 billion in goods during the first four months of the year, compared to $5.4 billion for the same period last year, a drop of more than eight-percent.
KIWA Staff Photo
