Midwest economic survey suggests growing strength

OMAHA, Neb. -- The economy appears to be improving in nine Midwest and Plains states because of the strength of manufacturing and agricultural businesses, according to a survey of business leaders released Tuesday.

The overall economic index in the monthly Mid-America report grew to 60 in April. That's even healthier than March's 58.6 because any score above 50 suggests economic growth.

"Heavy manufacturing continues to be source of growth for the region with export-oriented manufacturers leading the way," said Creighton University economist Ernie Goss, who oversees the report.

The survey of business leaders and supply managers covers Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

The strength of the economy is translating into job growth in the region. The hiring index improved to a strong 62.1 from March's 58.5. Goss said in the months ahead he expects some of the strongest job growth in the region since the recession ended in 2009.

"Employment growth in the region is accelerating," Goss said.

The survey uses a collection of indexes ranging from zero to 100 and that any score above 50 suggests growth while a score below 50 suggests decline for that factor.

The prices-paid index declined to 67.8 in April from March's 76.5, but it remains high enough to suggest continued inflation pressure on the price of raw materials and supplies.

The business leaders surveyed remain confident in the economy over the next six months. The confidence index grew to 64.5 in April from March's 62.2.

The inventory index declined to 56.7 in April from March's 58.9.

The export index improved to 57 in April from March's 56.4 while the import index dipped to 56.7 in April from 57.4.

"Exports continue to be one of the most important factors driving growth in the regional economy higher, Goss said. "Short of trading skirmishes or a strong dollar, I expect exports to remain healthy for most areas of the nine-state region."

The other components of the April index were:

-- New orders increased to 64 from March's 60.8.

-- Production or sales grew to 61.3 in April from 60.4.

-- And deliveries improved to 56.1 from March's 54.5.

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Online:

Creighton University economic reports: http://www.outlook-economic.com