Labor Shortages Slow Mid-America Growth for April: Almost Half See Labor Shortages as Biggest Challenge
April survey highlights:· Labor shortages pushed the overall index lower for the month. Even so, the overall index remained above growth neutral.· Approximately 44.7 percent of supply managers identified labor shortages as the greatest threat to company success in the next 12 months.· Almost one-third of supply managers indicated that only price exceeded data security in selecting a vendor.· Exports and imports improved for the month.OMAHA, Neb. (May 1, 2019) – The April Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, fell to a still solid reading signaling positive growth for the region over the next three to six months.Overall index: The Business Conditions Index, which ranges between 0 and 100, declined to 55.9 from March’s 58.2. This marks the 29th straight month the index has remained above growth neutral 50.0.
“The regional economy continues to expand at a positive pace. However, as in recent months, finding and hiring qualified workers remained the chief threat to manufacturing economy for the region. Approximately 44.7 percent identified labor shortages as the greatest threat to company success in the next 12 months,” said Ernie Goss, PhD, director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business.Employment: As a result of worker shortages, the April employment index fell to a tepid 51.1 from March’s solid 56.4.“Until recently, overall manufacturing employment growth in the region has been very healthy and exceeded that of the nation,” said Goss. “However, overall employment growth for the region over the past 12 months at 0.5 percent is well below national job growth of 1.5 percent,” said Goss.Wholesale Prices: The wholesale inflation gauge for the month indicated modest inflationary pressures for the month with a wholesale price index of 67.5 from 74.5 in March. “I expect tariffs and flood impacts to boost the inflation index slightly higher in the months ahead,” said Goss.Almost one-third, or 29.2 percent, of supply managers indicated that only price exceeded data security in selecting a vendor....
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