OMAHA, Nebraska -- A survey of business managers in nine Midwest states shows more economic growth in the month just past.
May's Mid-America Business Conditions Index fell to 60.0 from April's 65.9. On the Index's 0-100 scale, a reading of 50 is seen as growth neutral and anything above is positive.
Creighton University Economist Ernie Goss says there is some caution in this month's survey.
"For May, six out of 10 expect growth to slow for the rest of 2022. Slowing, but still positive," Goss says.
He says this month's Index also shows Midwest business managers expect ongoing inflation to affect their prices for supplies and raw material for the rest of the year.
"Seventeen-point-four percent increases in the Wholesale Price Index--that's some big, big time numbers in terms of growth in wholesale prices. Of course, that will spill over into consumer prices in the weeks and months ahead," Goss says.
He says business managers in the May survey say inflation is likely to continue to affect the regional economy for the rest of 2022.
"I expect it to come down a bit--there's some indicators that say inflation is declining. Economic growth will likewise slow for the rest of the year, but still in the positive range right now," Goss says.
He also says supply chain disruptions remain the greatest challenge for the rest of 2022, according to supply managers in the Index.
The monthly Mid-America Business Conditions Index surveys business and supply managers in Iowa, Nebraska, Kansas, Minnesota, Missouri, North Dakota, Oklahoma, and South Dakota.