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Midwest Economy Shows Effects of Supply Issues, Inflation

OMAHA, Nebraska -- November's Mid-America Business Condition Index continues to show growth--just at a slower pace than in October.

The nine-state Index, which includes Iowa and Nebraska, fell to 60.2 from October’s 65.2. An Index reading of 50 is considered growth-neutral.

Supply issues are continuing to be felt in the regional economy.

"One out of four supply managers surveyed for November's nine-state Mid-America Business Condition Index expect the supply chain delays to improve in the first half of 2022. More than 50 percent of supply managers expect these supply chain disruptions, supply chain bottlenecks, to get worse," says Creighton University Economist Ernie Goss.

He says rising inflation is continuing to be felt in the regional economy.

"We're seeing some of the highest numbers we've recorded since we began the survey more than 25 years ago. I would say it's the most consistent upward price pressures that we've recorded in the last three decades," Goss says.

He says business managers surveyed for November's Business Condition Index say supply and transportation issues are pushing up costs, which is driving inflation.

Goss also says the newly-discovered Omicron variant of COVID-19 may have an effect on the Midwest economy in the new year.

"I'm still expecting slower growth in the first half of 2022. It will slow even more, obviously, if that variant of COVID-19 expands in the U.S. and globally," he says.

The first confirmed U.S. case of the Omicron COVID variant was confirmed Wednesday.


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