From Creighton's Heider College of Business, August 1L
July Survey Highlights:
- Creighton’s regional Business Conditions Index climbed into a range indicating solid manufacturing growth.
- Despite supply chain bottlenecks and the strong dollar, regional exports were healthy for July.
- The regional inflation gauge continues to indicate excessive inflationary pressures at the wholesale level.
- Confidence indices for all of 2022, all below growth neutral, are the worst recorded since the 2008-09 recession.
- On average, supply managers expect their prices to climb by 7.4% over the next 12 months, which is down from their 7.7% projection last year at this time.
- On average, manufacturing supply managers expect a raise of only 3.5% for the next 12 months.
OMAHA, Neb. (August 1, 2022) – The Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, rose above growth neutral for the 25th straight month.
Overall Index: The Business Conditions Index, which uses the identical methodology as the national Institute for Supply Management (ISM) and ranges between 0 and 100 with 50.0 representing growth neutral, rose to a solid 59.8 from June’s 58.6. The Mid-America report is produced independently from the national ISM.
“Creighton’s monthly survey results indicate the region continues to add manufacturing activity at a solid pace, but with significant inflationary pressures ahead. Supply chain disruptions eased further in July, according to supply managers,” 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.
Even with solid economic activity, supply managers were very pessimistic about the economy. As reported by one supply manager, there are “relatively new concerns with eminent recession and the impacts.”....
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