OMAHA, Nebraska -- An August survey of Midwest business leaders is showing negative growth for the month. The nine-state Mid-America Business Conditions Index reading declined to 48.7 from 50.7 in July. It represents the eighth time in 2024 that the index has hovered around the growth neutral reading of 50.
Creighton University Economics professor Ernie Goss says the new survey also cites an ongoing concern from supply managers.
"The highest was economic recession. That was the number one threat to the economic situation of these businesses," Goss says.
He says the current regional index also reflecting a trend in the rural economy--effects from a slowdown in manufacturing.
"John Deere--look no further. That's a manufacturer of agricultural equipment having layoffs--that's what we're seeing. That's not good for the region, that's not good for the nation, and it's certainly not good for the companies," Goss says.
Quad Cities-based Deere and Company has laid off nearly 2,000 workers this year after reporting a drop in revenue of more than 15% in the third quarter of 2024, and 11% from the same time last year.
Goss also sites declining farmland prices and falling commodity prices for what he's calling a recession in the rural economy.