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Midwest economy: May state-by-state glance

June 3, 2019

OMAHA, Neb. (AP) — The Institute for Supply Management, formerly the Purchasing Management Association, began formally surveying its membership in 1931 to gauge business conditions.

The Creighton Economic Forecasting Group uses the same methodology as the national survey to consult supply managers and business leaders. Creighton University economics professor Ernie Goss oversees the report.

The overall index ranges between 0 and 100. Growth neutral is 50, and a figure greater than 50 indicates growth in that factor over the next three to six months.

Here are the state-by-state results for May:

Arkansas: The state’s overall index declined to 55.9 from April’s 57.7 Index components were new orders at 61.2, production or sales at 57.8, delivery lead time at 57.9, inventories at 47.8 and employment at 54.9. Arkansas manufacturers are expanding the average workweek hours as well as hiring, Goss said. Construction activity remains strong, and Arkansas’ nondurable-goods producers are adding jobs at a solid pace.

Iowa: For a second straight month, Iowa’s overall index fell below growth neutral. It dropped to 47.0 from 48.9 in April. Index components were new orders at 49.9, production or sales at 47.3, delivery lead time at 43.3, employment at 47.3 and inventories at 44.3. “Flooding, especially in western Iowa, stymied manufacturing activity in the state for the month,” Goss said.

Kansas: Kansas’ overall index jumped to 55.9 in May from 48.3 in April. Index components were new orders at 60.2, production or sales at 60.6, delivery lead time at 55.4, employment at 53.2 and inventories at 50.2. “Durable-goods manufacturers, including transportation equipment producers, reported solid gains for the month.” Goss said. Nondurable-goods producers, including food processors, also reported business gains.

Minnesota: The state’s overall index inched up to 55.0 last month from 54.5 in April. Index components were new orders at 57.6, production or sales at 55.9, delivery lead time at 57.9, inventories at 51.1 and employment at 52.3. Durable-goods manufacturers reported gains in May, Goss said, as did nondurable-goods producers, excluding food processors.

Missouri: Missouri’s overall index slipped to 57.1 in May from April’s 57.6. Index components were new orders at 59.7, production or sales at 59.3, delivery lead time at 54.9, inventories at 54.3 and employment at 57.4. Durable-goods producers detailed strong gains for the month, Goss said, and nondurable-goods producers, including food processors, reported healthy expansions.

Nebraska: Nebraska’s overall index dropped below growth neutral in May, hitting 48.9, compared with April’s 53.8. Index components were new orders at 53.9, production or sales at 52.5, delivery lead time at 47.9, inventories at 43.4 and employment at 46.8. “Durable-goods producers in the state, including agriculture equipment manufacturers, experienced pullbacks for the month,” Goss said. Food processors and other nondurable-goods producers also experienced slowdowns.

North Dakota: The state’s overall index dropped below growth neutral in May, hitting 49.0, compared with 50.6 in April. Index components were new orders at 52.4, production or sales at 59.2, delivery lead time at 46.2, employment at 45.3 and inventories at 41.9. “Pullbacks in economic activity among the state’s nondurable-goods producers, including food processors, more than offset soft but positive gains for durable-goods manufacturers in the state,” said Goss.

Oklahoma: For a second straight month, Oklahoma’s overall index fell below growth neutral 50.0. It inched up to 48.9 last month from 48.6 in April. Index components were new orders at 53.8, production or sales at 52.4, delivery lead time at 47.9, inventories at 43.4 and employment at 46.8. “Economic losses for the state’s durable-goods and nondurable-goods producers spilled over into other portions of the state’s economy for the month,” he said.

South Dakota: The state’s overall index fell to a still solid 55.2 in May from April’s regional high of 62.2. Index components were new orders at 54.2, production or sales at 52.9, delivery lead time at 58.3, inventories at 55.8 and employment at 54.6. Manufacturers reported slowing growth for the month, Goss said.

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