The Institute for Supply Management, formerly the Purchasing Management Association, began formally surveying its membership in 1931 to gauge business conditions.
The Creighton Economic Forecasting Group uses the same methodology as the national survey to consult supply managers and business leaders. Creighton University economics professor Ernie Goss oversees the report.
The overall index ranges between 0 and 100. Growth neutral is 50, and a figure greater than 50 indicates an expanding economy over the next three to six months.
Here are the state-by-state results for March:
Arkansas: The state’s overall index for March rose to 63.2 from February’s 58.9. Components of the index were new orders at 65.7, production or sales at 66.1, delivery lead time at 55.3, inventories at 64.2 and employment at 64.9. “While the state’s durable-goods sector lost 1,400 jobs over the past 12 months, nondurable-goods producers in the state added approximately 3,500 jobs,” Goss said. “Recent surveys of supply managers indicate that both manufacturing and nonmanufacturing firms in the state will expand output and employment for the next three to six months.”
Iowa: Iowa’s overall index slipped to 60.5 last month from 62.6 in February. Components of the overall index were new orders at 63.7, production or sales at 58.8, delivery lead time at 53.6, employment at 64.2 and inventories at 62.2. “Durable-goods manufacturers in the state, especially those linked to agriculture, continue to experience pullbacks, with job losses of approximately 3,700 over the past 12 months,” Goss said. “On the other hand, transportation and nondurable-goods firms in the state are benefiting from the upturn in regional and national economic activity.”
Kansas: The state’s overall index for March slumped to a regional low of 52.2 from February’s 61.5. Components of the index were new orders at 54.7, production or sales at 50.5, delivery lead time at 46.1, employment at 54.1 and inventories at 55.3. It’s clear that wildfires across the state harmed the index, Goss said. He expects the impact to continue during April and expects the state’s overall reading to move below growth neutral in the month’s survey.
Minnesota: Minnesota’s overall index jumped to 61.8 last month from 54.3 in February. Components of the overall index were new orders at 65.3, production or sales at 60.3, delivery lead time at 54.9, inventories at 63.8 and employment at 64.5. Durable-goods manufacturers, including metal producers, continue to report slow growth while nondurable-goods firms such as food processors experience improving economic conditions, Goss said. Both manufacturing and nonmanufacturing sectors will continue to expand at a healthy pace for the next three to six months, he said.
Missouri: The state’s overall index slipped 66.6 in March from 66.8 in February. Components of the index were new orders at 69.9, production or sales at 64.6, delivery lead time at 58.9, inventories at 68.4 and employment at 71.2. Goss said he expects manufacturers to continue to add jobs at an annualized pace above 2 percent for the next three to six months.
Nebraska: Nebraska’s overall index rose to 59.8 last month from 55.4 in February. Components of the index were new orders at 63.2, production or sales at 58.4, delivery lead time at 53.2, inventories at 61.8 and employment at 62.5. “While the state’s durable-goods sector lost 1,300 jobs over the past 12 months, nondurable-goods producers in the state added approximately 1,600 jobs,” Goss said. Recent surveys of supply managers indicate manufacturers will expand output and employment for the next three to six months, he said.
North Dakota: The state’s overall index sank to 54.3 in March from 66.8 in February. Components of the overall index were new orders at 57.3, production or sales at 53.0, delivery lead time at 48.3, employment at 56.70 and inventories at 56.1. “The state’s energy sector has stabilized, albeit back to 2011 levels, while the manufacturing sector is experiencing upturns in business activity,” Goss said. “I expect job growth to hover only slightly above zero for the next three to six months in the state.”
Oklahoma: Oklahoma’s overall index slid to 58.2 last month from 59.0 in February. Components of the index were new orders at 61.5, production or sales at 56.8, delivery lead time at 51.8, inventories at 60.1 and employment at 60.8. “Durable-goods manufacturers in the state, especially those linked to the state’s large energy sector, continue to experience pullbacks in economic activity,” Goss said. “On the other hand, nondurable-goods producers in the state, including food processors, are experiencing upturns.”
South Dakota: The state’s overall index jumped to a regional high of 67.2 in March from 62.4 in February. Components of the index were new orders at 71.0, production or sales at 65.6, delivery lead time at 59.8, inventories at 69.4 and employment at 70.2. “I expect annualized job gains for the state’s nonfarm firms to rise over 2 percent over the next three to six months,” Goss said.
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