Business conditions weaken again in Iowa, midwest

Business conditions in Iowa and eight other Midwestern states weakened again in July, according to a monthly survey by Creighton University's Economic Forecasting Group.

The August Business Conditions Index, which ranges between 0 and 100, declined to 49.6 from July's 50.6, slipping below growth neutral. Ernie Goss, director of Creighton's Institute for Economic Inquiry, said the index is pointing to weak, and potentially negative growth through the fourth quarter of 2015.

'Growth for nondurable goods manufacturers offset weaker business conditions for durable goods producers including metal manufacturers, agricultural equipment producers and energy equipment manufacturers,” Goss said in a news release.

'Firms in Arkansas, Iowa, Minnesota, Missouri and South Dakota reported positive growth for the month while businesses in Kansas, Nebraska, North Dakota and Oklahoma detailed cuts in economic activity.”

The regional employment gauge improved for August, but remains at a level pointing to slow new hiring in the months ahead. The job gauge advanced to a weak 52 from July's growth neutral 50.

'Since January of this year, the nine-state region has added more than 57,000 nonfarm jobs according to U.S. Bureau of Labor Statistics,” Goss said. 'On the other hand, the region lost almost 9,000 manufacturing jobs during this same period of time.”

Iowa's August Business Conditions Index declined to 51.6 from 51.8 in July. Goss said the strong dollar, which has restrained sales abroad, has weighed on the state's durable goods sector in terms of jobs.

Scott Brave, senior business economist with the Federal Reserve Bank of Chicago, said the initial Midwest Economic Index, released Monday, shows similar results for manufacturing in the bank's five-state district.

'Our overall manufacturing index was slightly negative,” Brave said. 'A lot of that is due to the fact that manufacturing really hasn't picked up in this district.”