Slower economic growth projected in Iowa

A strong dollar is expected to make products produced for export in Iowa and other Midwest states less competitive in foreign markets, slowing overall growth in the month ahead.

The Creighton University Mid-America Business Conditions Index for January increased slightly to 54.8 from December's reading of 54.4. The index is pointing to positive, but slow to modest growth for the first half of 2015, according to Ernie Goss, director of Creighton's Economic Forecasting Group, which released the monthly index on Monday.

'Firms such as Helmerich and Payne in Oklahoma, which are tied to energy, and John Deere in Iowa, with links to agriculture, have announced layoffs,” Goss said in a statement accompanying the release of the index.

'I expect these job cuts to grow in the months ahead for states in the region. However, growth for companies outside of energy and agriculture will more than offset the declines in those sectors.”

Supply managers were asked to identify their firm's biggest economic challenge for 2015. More than one-third, or 34.7 percent, named low or declining customer demand as their top challenge, while 20.8 percent reported growing regulatory costs as their biggest challenge.

Iowa's Business Conditions Index declined to 52.2 from December's 53.4, the sixth time in the past seven months that the index has slipped.

'Durable goods producers, including agriculture machinery manufacturers, and metal manufacturing, suffered pullbacks in jobs and economic activity for the month,” Goss said. 'Value-added services firms, including engineering and business services companies, more than offset manufacturing losses.”