Manufacturing index edges up in August

CEDAR RAPIDS - The Mid-America Business Conditions Index, a monthly economic indicator for Iowa and eight other Midwest states, rose slightly in August from July's healthy reading.

The overall business conditions index improved to 57.2 last month from 57 in July.

'After rising to its highest level in more than three years in June, the overall reading has hovered in a range pointing to positive growth for the overall economy and the job market over the next three to six months,” said Ernie Goss, director of Creighton University's Economic Forecasting Group, which compiles the index.

'Supply managers are reporting more and more shipment delays as the overall economy improves. One supply manager complained that rail shipping had become particularly problematic as shipments of energy products and housing products have begun to take up shipping space.”

The employment index fell below growth neutral for the first time this year, sliding to 48.7 from July's 53.8 and 61.4 in June, which was a two-year high.

'Businesses linked to agriculture lost jobs for the month,” Goss said. 'Job growth in the region has lagged that of the nation for 2014. However, this growth has varied significantly across the region with North Dakota, Missouri and South Dakota above the national average and the remaining states below the U.S. average.”

Iowa's Business Conditions Index fell to 58.3 last month from 63 in July. Components of the index from the monthly survey of supply managers were new orders at 57.8, production or sales at 56.9, delivery lead time at 62.2, employment at 60 and inventories at 54.5.

'Economic growth will remain healthy for the second half of 2014 for Iowa based on our surveys over the last several months,” Goss said. 'Since the national recovery began in July 2009, the manufacturing sector in Iowa has added almost 18,000 manufacturing jobs for a 9 percent job gain.”