Photo: Dorwart, Mike (uploader)
OMAHA, Nebraska -- Economic growth is continuing to slow in the Midwest.
"This is the fifth straight month we've recorded above growth-neutral readings. What we're seeing from the overall survey--the economy in the nine-state mid-American region is growth is slowing down but is still positive," says Creighton University Economist Ernie Goss.
He says the latest Mid-America Business Conditions Index, on a 0 to 100 scale, shows June's reading is 50.8--down from May's 51.3. The Index puts a reading of 50 as growth neutral.
Goss says he expects the regional economy to continue to slow.
"The outlook is lower, slower and slower growth. We've been saying that for some time and it's actually been happening for some time," he says.
On the upside, Goss says the series of interest rate hikes from the Federal Reserve appears to be slowing inflation in the Midwest.
"On average, and this is remarkable, supply managers (in the survey) expect prices to grow by seven-tenths of a percent on the next six months--that's very low inflationary pressure," he says.
Goss says the wholesale inflation gauge for June declined to 67.4 from May’s 74.0.
After taking a pause in June, Goss says he expects the Federal Reserve to raise short-term interest rates by 0.25% at its next meetings on July 25 and 26.
The monthly Mid-America Business Conditions Index surveys business managers in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota.