September survey highlights:
- The regional Business Conditions Index expanded to its highest level in more than two years.
- The regional employment index climbed to its highest level since June 2019.
- Four of five supply managers reported their firms were experiencing difficulty finding and hiring qualified workers.
- Approximately 62.9% of supply managers reported shipping bottlenecks and difficulties in receiving materials and transporting output.
- Business confidence remains very healthy.
OMAHA, Neb. (October 1, 2020) – For the fourth straight month, the Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, advanced above growth neutral and to its highest level since May 2018.Overall index: In April of this year, Covid-19 pushed the overall index to its lowest level in 11years. Since April, the overall index has risen five consecutive months with four straight months above growth neutral 50.0. The September Business Conditions Index, which ranges between 0 and 100, increased to 65.1 from August’s 60.0.“Creighton’s monthly survey results have mirrored the national manufacturing survey results indicating that the manufacturing sector has been expanding at a solid pace since sinking to a post-2008 recession low in April. Even so, current output in the regional and U.S. manufacturing sectors remains well below pre-COVID-19 levels. I expect the national number to rise well above growth neutral for September when it is released later this morning,” 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: The regional employment index moved well above growth neutral for September to its highest level since June 2019, climbing to 61.8 from 54.8 in August. Prior to COVID-19, the regional insured unemployment rate for the region stood at 1.3%. It reached a high of 11% in May and fell to 4.6% in September.Importantly, four of five supply managers reported that their firms were experiencing difficulty finding and hiring qualified workers.As stated by one supply manager, “Very competitive for entry level staff and company is having to adjust scale wages.”....
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