If you recall, the headline to Creighton's Rural Mainstreet report a couple weeks ago was: "Creighton University's 'Rural Mainstreet Index Soars to Record High: 90% of Bankers Report Labor Shortages Restraining Growth'"
And from Creighton's Heider College of Business, June 1, comes the Mid-America Business Conditions Index:
May survey highlights:
- Creighton’s regional Business Conditions Index climbed into a range indicating very strong growth for next three to six months.
- The wholesale inflation gauge for the month surged to a record high 96.3 from April’s 96.2, the previous record high.
- Almost 30% of supply managers identified soaring input prices as the greatest 2021 economic challenge for their firm.
- Even with a surging manufacturing sector, regional manufacturing added jobs at a modest pace.
- Almost 23% of manufacturers named finding and hiring qualified workers as the greatest 2021 challenge to their firm.
- As a result of shortages of workers, average hourly wages for regional manufacturing production workers advanced by a strong 4.9% over the past 12 months according to the U.S. Bureau of Labor Statistics data.
- Supply bottlenecks pushed deliveries to their slowest pace on record.
OMAHA, Neb. (June 1, 2021) – For the 12th straight month, the Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, moved into vigorous growth territory.
Overall index: After rocketing to a record high 73.9 in April, the Business Conditions Index, which ranges between 0 and 100, slipped to still strong 72.3 for May. However, manufacturing supply managers report that labor shortages and supply bottlenecks continue to restrain growth.
Almost one of three, or 30%, of supply managers identified soaring input prices as the greatest 2021 economic challenge for their firm.
More than nine out of 10 supply managers reported supply bottlenecks, or delays, for May with 40% indicating that the delays were significant.
“Since bottoming in April of last year, Mid-America has added approximately 1.0 million jobs for an 8.3% advancement. Creighton’s monthly survey results indicate that the region is adding manufacturing business activity at a healthy pace, and that growth will remain strong with the overall regional economy returning to pre-pandemic levels in the first quarter of 2022,” 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 remained above growth neutral for May, but sank from 57.2 in April to 55.6 for the month. “Almost one-fourth, or 23%, of manufacturers named finding and hiring qualified workers as the greatest 2021 challenge to their firm,” said Goss.
“The shortage of production workers continues to push wages higher. U.S. Bureau of Labor Statistics data indicate that average hourly earnings of manufacturing production workers in the region expanded by a strong 4.9% over the past 12 months,” said Goss.
Other comments from May survey participants:
“Delays in deliveries started occurring in February. Prior to that no issues.”
“Great deal of uncertainty: How will economy open up from Covid shutdowns.”
“Supply chain slowdowns and trying to increase our workforce have been the biggest cause of getting back to full production capacities.”
“Raw material supply continues to be a major concern- from metals to chemicals. Logistics cost and extended lead times to obtain products are also at high impact. And of course, the lack of labor and rising cost of labor.”
Wholesale Prices: The wholesale inflation gauge for the month surged to a record high 96.3 from April’s 96.2, the previous record high.....
....MUCH MORE
