Midwest business conditions improve in June

Business conditions in Iowa and eight other states in the upper Midwest improved in June, according to a monthly survey of

supply managers.

Creighton University's Mid-America Business Conditions Index, which ranges between 0 and 100, rose to 53 from 50.4 in May. An

index greater than 50 indicates an expanding economy over the course of the next three to six months.

'Much weaker business conditions for firms tied to energy are restraining the overall reading,” said Ernie Goss, director of

Creighton University's Economic Forecasting Group in a news release. 'This weakness is spilling over into metal manufacturers

throughout the region.”

The regional employment gauge advanced to a weak 49.1 from May's 48.3. remaining in a range indicating slightly negative to

stagnant job growth.

'Areas dependent on agriculture are experiencing cuts among metal producers and agricultural equipment manufacturers while

communities tied to energy are facing job losses in machinery manufacturing serving oil producers,” Goss said.

The new export orders index increased to 51.3 from 50.0 in May. The import index for June climbed to 54.8 from May's 48.8.

'Over the last year, the value of the U.S. dollar has risen by more than 16 percent against the currencies of our chief trading

partners,” Goss said. 'This movement has made U.S. goods less competitively priced abroad, and foreign goods more cheaply

priced in the U.S.”

Iowa's Business Conditions Index jumped to 52.5 in June from 50.4 in May.

'Growth among non-durable manufacturers in the state, including food processors, more than offset weaker conditions among

durable goods manufacturers,” Goss said. 'Metal producers and agricultural equipment manufacturers in the state continue to

suffer pullbacks in business activity.”