Midwest economy: June state-by-state glance

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 June:

Arkansas: The state’s overall index rose to 66.1 from May’s 58.4. Components of the index were new orders at 73.2, production or sales at 75.3, delivery lead time at 58.3, inventories at 59.5, and employment at 64.2. “Manufacturers in the state are now adding jobs at a quicker pace,” Goss said. Based on surveys over the past several months, Arkansas will continue to add manufacturing and nonmanufacturing jobs at a healthy pace.

Iowa: The overall index for Iowa improved to 61.4 from 57.5 in May. Components of the index were new orders at 68, production or sales at 70, delivery lead time at 54.2, employment at 59.6, and inventories at 55.3. “Nondurable goods continue to add jobs at a solid pace more than offsetting losses for the state’s durable goods producers,” Goss said. “Manufacturing and nonmanufacturing activity will continue to expand in the state through the fourth quarter of this year with job gains trailing the expansion in overall economic activity.”

Kansas: The overall index for Kansas expanded to 56.3 from May’s 53.9. Components of the index were new orders at 62.3, production or sales at 64.2, delivery lead time at 49.7, employment at 54.7, and inventories at 50.7. “Gains for nondurable goods producers, including food processors, more than offset pullbacks for durable goods manufacturers including transportation equipment manufacturers,” Goss said.

Minnesota: The state index soared to a regional high 68 in June from May’s healthy 58.4. Components of the overall June index were new orders at 75.2, production or sales at 77.4, delivery lead time at 59.9, inventories at 61.2, and employment at 66. “Expansions were recorded for a broad range of manufacturers, both durable and nondurable, including navigation equipment producers, medical equipment manufacturers and food processors. Based on surveys over the past several months, the state economy will continue to grow at a healthy pace through the fourth quarter of this year,” Goss said.

Missouri: The overall index for Missouri rose to 53.8 from 51 in May. Components of the overall June index were new orders at 59.6, production or sales at 61.3, delivery lead time at 47.5, inventories at 48.5, and employment at 52.3. “Growth was recorded by nondurable and durable goods producers in the state. However, manufacturing growth continues to lag behind nonmanufacturing advancements. Business expansion will remain positive through the end of the final quarter of this year,” said Goss.

Nebraska: The Nebraska index grew to 61.3 from 55.2 in May. Components of the index from the monthly survey of supply managers were new orders at 67.8, production or sales at 69.8, delivery lead time at 54, inventories at 55.2, and employment at 59.5. “Durable goods producers continue to shed jobs. However, these losses are more than offset by gains among nondurable goods manufacturers in the state. Expansions were very healthy for foods processors in the state as metal manufacturers and machinery producers recorded pullbacks,” Goss said.

North Dakota: The state’s overall index jumped to 67.2 in June from May’s 53.9. Components of the overall index were new orders at 74.4, production or sales at 76.3, delivery lead time at 59.2, employment at 65.2, and inventories at 60.5. “Manufacturing linked to energy is once again expanding as manufacturers tied to agriculture continue to experience pullbacks. Based on surveys over the past several months, the state will continue to add jobs and economic activity through the fourth quarter of this year,” said Goss.

Oklahoma: The overall index climbed to 57.7 from 54.2 in May. The components include new orders at 63.9, production or sales at 65.7, delivery lead time at 50.9, inventories at 51.9, and employment at 56.0. “Oklahoma manufacturers are once again adding jobs and expanding economic activity. Food processors in the state are experiencing healthy business and job growth. Oklahoma will, based on recent surveys, continue to expand at a positive pace, but unspectacular pace through the final quarter of this year,” said Goss.

South Dakota: The overall index for South Dakota increased to 67.4 from May’s regional high 61.7. Components of the overall index were new orders at 74.6, production or sales at 76.8, delivery lead time at 59.5, inventories at 60.7, and employment at 65.5. “Expansions among nondurable goods manufacturers in the state more than compensated for slight losses for durable goods producers. Manufacturing output in the state is growing at a healthy pace even as producers add jobs at a sub-par rate,” said Goss.