Midwest business conditions improve

Creighton University's MidAmerica Business Conditions index improved to 50.5 in February from 48.3 in January, moving above growth neutral for the first time since July 2015.

Over the past several months, the regional index has indicated that the manufacturing sector is experiencing anemic, but stabilizing, economic conditions.

'A strong dollar and weakness among the nation's chief trading partners remains a restraint on regional growth,” said Ernie Goss, director of Creighton University's Economic Forecasting Group, in a news release.

'Against the currency of the region's primary trading partner, Canada, the dollar has strengthened by 30 percent since July 2014. This upturn has made U.S. goods much less competitively priced in Canada.”

The regional employment gauge dropped to 44.4 in February from January's 49.3. Goss said employment is a lagging economic indicator.

'I expect the solid improvement in new orders and production for the month to spill over into the job market in the months ahead with modest gains for the overall regional labor market. However, I expect for job losses to continue for the two energy dependent states, North Dakota and Oklahoma,” Goss said.

When the surveyed businesses were asked to name the greatest economic threat facing their firm for 2016, labor topped the list.

'Approximately 17.5 percent indicated finding and hiring qualified workers would be the biggest challenge or threat to business success in the coming year,” Goss said. 'Approximately 39.7 percent of businesses reported U.S. economic weakness represented the greatest economic threat for 2016.”

Iowa's February Business Conditions Index rose to a positive 51.3 from 50.3 in January.

'Over the past 12 months, the state has lost 1,700, or 0.8 percent of its manufacturing jobs,” Goss said. 'Our surveys over the past month indicate the manufacturing sector is gaining jobs, but at a very slow pace.

'These slight gains will spill over into the broader state economy with moderate job gains for the overall economy.”