The Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Oklahoma, fell but remained above growth neutral for 20th straight month.
The Business Conditions Index, which uses the identical methodology as the national ISM, ranges between 0 and 100, dropped to 56.2 from December’s healthy 64.6. Anything above 50 is considered positive territory.
“Creighton’s monthly survey results indicate the region is adding manufacturing activity at a positive pace, but with much weaker job numbers for the month. In terms of supply chain disruptions and bottlenecks for the first half of 2022, approximately one-third of supply managers expect delays to worsen with only 12% anticipating improvements,” said Dr. Ernie Goss, who compiles the survey.
The regional employment index plummeted to 43.6, its weakest reading since June 2020, from 59.3 in December, and the third straight decline in the monthly index.
“Despite healthy growth over the past year, compared to its pre-pandemic level, U.S. Bureau of Labor Statistics employment data indicate that the region has lost 16,000 manufacturing jobs, or 1.1%,” said Goss.