Midwest business conditions index slips

After three straight months of expansion, a gauge of business activity in a nine-state region of the Midwest declined last month, but remained above growth neutral.

Creighton University's Mid-America Business Conditions Index dipped to 50.1 in April from 50.6 in March. Over the past several months, the regional index, much like the national reading, has indicated the manufacturing sector is experiencing anemic, but stabilizing, business conditions.

'A somewhat weaker dollar, making U.S. goods more competitively priced abroad, contributed to stabilizing business conditions across the region,” said Ernie Goss, director of Creighton University's Economic Forecasting Group, in a news release.

'At the same time, continuing weakness in the region's agriculture and energy sectors remains an obstacle to improving overall growth,”

The regional employment gauge remained below growth neutral falling to 45.0 from March's 45.9. Over the past year, the region's manufacturing sector has lost approximately 1.9 percent, or roughly 26,000, manufacturing jobs.

'The losses in manufacturing have spilled over into the broader regional economy, and reduced overall annualized regional employment growth from 1.5 percent to 0.7 percent over the past year,” Goss said. 'I expect the broader economy to continue to add jobs, but at an even slower pace.”

Looking ahead six months, economic optimism - as captured by the April business confidence index - slipped to 51.3 from March's 51.4.

'Improving prices for manufactured products and commodities over the last several months pushed the index above growth neutral over the last two months,” Goss said.

Iowa's April Business Conditions Index slid to 50.1 last month from 51.3 in March.

'Weakness among the state's durable goods manufacturers more than offset slight gains for nondurable goods producers,” Goss said. 'Over the last 12 months, Iowa manufacturers lost 5,900 jobs, or approximately 2.7 percent, of overall manufacturing jobs.”