Regional survey shows business growth still at a standstill

The Associated Press Date: 09/04/01 22:15

OMAHA, Neb. -- Business growth remains at a standstill for the 10th consecutive month in a nine-state region, according to a monthly regional economic survey released Tuesday.

An August survey of purchasing managers for companies in the Mid-America region indicates that new orders are weak and unemployment is likely to rise in the near term, said Ernie Goss, an economics professor at Creighton University who conducts the monthly survey.

"Seven Federal Reserve interest rate cuts and moderating energy prices have failed to reignite the regional economy," Goss said. "The lack of any significant improvement in the regional economy continues to take its toll on confidence among purchasing managers and business leaders."

Missouri's overall index rose slightly to 47.3 from July's weak 46.0. It was the sixth time this year that Missouri's overall index was below 50. Weakness in new orders and production point to slower growth and rising unemployment for the state in the months ahead, Goss said.

Kansas' overall index rose sharply to 40.2 from July's very weak 26.1.

"While current conditions in Kansas are the strongest in the nine-state region, surveys over the past several months point to a slowing economy with rising unemployment in the coming months," Goss said.

The region's overall economic index for August was 45.6, up slightly from July's reading of 44.6.

In the survey, numbers greater than 50 indicate a growing economy, and numbers under 42 indicate a shrinking economy. The survey ranges between 0 and 100.

The Mid-America Business Conditions Survey includes purchasing managers in Arkansas, Oklahoma, South Dakota, North Dakota, Nebraska, Iowa and Minnesota.

The greatest economic growth for August was in South Dakota. Iowa was the only other state showing signs of growth. The state with the weakest economy was Arkansas. Oklahoma also had a slowing economy.

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-- steven valdiserri (valsteve11@home.com), September 05, 2001

Answers

We've had a number of reports now that the manufacturing slump in this country is levelling off. But, it still troubles me that the same cannot be said for most of the rest of the world. Germany and Italy are in recession. Argentina and Japan are a complete mess. And, most of Southeast Asia is not far behind. We do heavy export business, particularly, with Southeast Asia, and Midwest suppliers of machine tools, as well as tech products of all types are key. If these exports sag, then the current levelling off, and mild uptick, is nothing more than a misleading blip. And, the downward trend will soon resume.

-- Wellesley (wellesley@freeport.net), September 05, 2001.

I couldn't agree more. Bear rallies in bull markets, and bull rallies in bear markets are common. Same goes for manufacturing ups and downs. Nothing ever moves in a straight line as far as markets and trends go. I think it a little early to be popping those bubbly wine corks.

-- Billiver (billiver@aol.com), September 05, 2001.

Why don't you people give it up? The recession is over before it even started. Alan Greenspan is seeing to that.

-- Oplly-Anna (polly-anna@webster.net), September 05, 2001.