Midwest economy seen as healthy, growing

The economy in a nine-state region that includes Iowa is expected to be healthy and to continue to grow in the next three to six months, according to the MidAmerica Business Conditions Index for June released by Creighton University.

The overall Business Conditions Index for the region, which ranges between 0 and 100, climbed to 60.6 from 60.5 in May.

'This is the highest overall reading that we have recorded since March 2011,” said Ernie Goss, director of Creighton University's Economic Forecasting Group. 'Not since the second quarter of 2010 have we recorded new orders growth above that of the second quarter of this year. Production and delivery of these orders in the months ahead will underpin regional economic growth.”

The employment index for June rose to 61.4, its highest level in two years, and up from last month's 60.0.

'Growth among durable goods manufacturers in the region is pushing overall employment growth higher,” Goss said. 'Regional job growth for the first half of 2014 is running at an annual rate of 1.5 percent, which is well ahead of the growth experienced for the same period in 2013.

'This pace will remain strong for the second half of 2014 according to our surveys over the past several months.”

Iowa's Business Conditions Index for June expanded to a very healthy 67.8 from May's 66.5. Components of the index from the monthly survey of supply managers were new orders at 77.4, production or sales at 77.5, delivery lead time at 57.9, employment at 67.3, and inventories at 58.8.

'There are more workers on Iowa payrolls than ever before,” Goss said. 'Our surveys indicate this expansion will continue.

'However China's recent decision to reject the importation of U.S. dried distillers' grains (DDGs), due to concerns over bioengineered corn, is a risk to Iowa's large bioenergy sector, especially if other nations follow suit. China purchases between one-fourth and one-third of the U.S. output of DDGs that is exported.”

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