AP NEWS
Related topics

Midwest economy: January state-by-state glance

February 1, 2018

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 an expanding economy over the next three to six months.

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

Arkansas: The January overall index for Arkansas plunged to 50.0 from December’s 56.8. Components of the index were new orders at 58.5, production or sales at 60.1, delivery lead time at 35.9, inventories at 47.7 and employment at 47.8. “Nondurable manufacturing in the state is growing at very strong pace, while Arkansas durable-goods producers are treading water,” Goss said.

Iowa: Iowa’s overall index climbed to 58.0 from 54.3 in December. Components were new orders at 67.4, production or sales at 67.8 delivery lead time at 42.2, employment at 51.3 and inventories at 61.1. “Both durable- and nondurable-goods manufacturing are experiencing growth well above that of the region and the nation. I expect this growth advantage to continue for the next three to six months,” he said.

Kansas: The overall index dropped to 59.6 for Kansas last month from a regional high of 62.0 in December. Components were new orders at 70.9, production or sales at 70.9, delivery lead time at 44.7, employment at 54.0 and inventories at 57.8.

Minnesota: Minnesota’s overall index slipped to 55.8 from December’s 56.8. Components were new orders at 62.5, production or sales at 63.9, delivery lead time at 38.8, inventories at 56.3 and employment at 57.8. “While manufacturing growth has been below that of the region, it has been less volatile than that of the region,” said Goss.

Missouri: The state’s overall index fell to 53.6 last month from 55.3 in December. Components were new orders at 60.6, production or sales at 61.9, delivery lead time at 49.9, inventories at 49.4 and employment at 46.1. “While nondurable-goods producers in the state are experiencing healthy growth, durable or heavy manufacturers are expanding at a much stronger pace, gaining jobs, and sales, both domestic and international,” said Goss.

Nebraska: The Nebraska overall index dipped to 53.7 in January from 57.6 in December. Index components were new orders at 63.7, production or sales at 64.6, delivery lead time at 39.6, inventories at 51.9 and employment at 48.5. “Sizable gains in business activity and jobs for nondurable-goods producers in the state more than offset losses in business activity and jobs for durable-goods manufacturers,” he said.

North Dakota: The state’s overall index fell below growth neutral in January, hitting 49.6 compared with 55.1 in December. Components of the overall index were new orders at 59.2, production or sales at 55.1, delivery lead time at 31.8, employment at 58.8 and inventories at 43.0. “As oil prices have risen, so has North Dakota’s energy sector,” Goss said. The gain has offset softer growth among the state’s manufacturers.

Oklahoma: Oklahoma’s overall index dropped to 57.8 last month from December’s 59.3. Components were new orders at 68.6, production or sales at 68.9, delivery lead time at 43.1, inventories at 56.0 and employment at 52.3. “Recent expansions for durable-goods manufacturers more than offset weakness among nondurable-goods producers in the state,” he said.

South Dakota: The state’s overall index dipped to 56.8 in January from 58.2 in December. Components were new orders at 65.1, production or sales at 65.9, delivery lead time at 46.6, inventories at 53.1 and employment at 53.4. “Strong growth for durable-goods producers in the state combined with solid expansions for nondurable-goods manufacturers to keep the overall index in the solid range,” Goss said.

AP RADIO
Update hourly