Midwest economy: February 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 growth in that factor over the next three to six months.

Here are the state-by-state results for February:

Arkansas: The overall index for Arkansas advanced to 55.4 from January’s 50.0. Components of the index were new orders at 53.4, production or sales at 65.4, delivery lead time at 47.9, inventories at 59.1 and employment at 51.2. “Average hourly earnings for Arkansas private sector workers expanded by a solid 2.9 percent over the past 12 months. Nondurable manufacturing in the state is growing at a very strong pace, while Arkansas durable-goods producers continue to expand at a slow rate,” Goss said.

Iowa: Iowa’s overall index climbed to a very healthy 59.4 last month from 58.0 in January. That included new orders at 61.5, production or sales at 63.8, delivery lead time at 56.4, employment at 59.1 and inventories at 56.1. “Average hourly earnings for Iowa private sector workers expanded by a tepid 1.2 percent over the past 12 months. Nondurable manufacturing in the state is growing at very strong pace, and Iowa durable-goods producers continue to expand at an equally healthy rate,” Goss said.

Kansas: The overall Kansas index advanced to 62.4 from January’s strong 59.6. The components were new orders at 64.7, production or sales at 66.6, delivery lead time at 59.7, employment at 62.1 and inventories at 59.0. “Average hourly earnings for Kansas private sector workers expanded by a tepid 1.6 percent over the past 12 months. Both nondurable manufacturing and durable-goods producers in the state are expanding at a very slow pace,” Goss said.

Minnesota: The state’s overall index rose to 57.6 last month from 55.8 in January. Components of the overall index were new orders at 62.2, production or sales at 59.8, delivery lead time at 51.8, inventories at 52.1 and employment at 62.2. “Average hourly earnings for Minnesota private sector workers expanded by a solid 3.2 percent over the past 12 months. Both nondurable- and durable-goods firms in the state are growing a steady pace,” said Goss.

Missouri: Missouri’s overall index jumped to 58.0 in February from 53.6 in January. Index components were new orders at 61.9, production or sales at 58.2, delivery lead time at 50.0, inventories at 58.8 and employment at 61.1. “Average hourly earnings for Missouri private sector workers expanded by a very healthy 4.5 percent over the past 12 months,” Goss said. Durable-goods manufacturers are expanding at a very strong rate, while nondurable-goods producers are growing slower, he said.

Nebraska: The state’s overall hit 58.3 last month, compared with 53.7 in January. Components of the index were new orders at 58.1, production or sales at 65.5, delivery lead time at 58.8, inventories at 53.1 and employment at 55.8. “Average hourly earnings for Nebraska private sector workers expanded by a very healthy 5.4 percent over the past 12 months. Nondurable-goods manufacturers are expanding at a very healthy rate, while durable-goods producers are experiencing pullbacks in economic activity,” he said.

North Dakota: The overall index for North Dakota rose above growth neutral last month, hitting 53.3, compared with 49.6 in January. Components of the overall index were new orders at 54.6, production or sales at 51.7, delivery lead time at 58.3, employment at 57.8 and inventories at 43.9. “Both durable-and nondurable-goods manufacturers in the state are expanding at a slow but positive pace,” said Goss.

Oklahoma: Boosted by higher oil prices, Oklahoma’s overall index has remained above growth neutral for the past seven months and rose to 60.5 in February from 57.8 in January. Components of the overall index were new orders at 62.7, production or sales at 64.8, delivery lead time at 57.6, inventories at 57.2 and employment at 60.2. “Average hourly earnings for Oklahoma private sector workers expanded by a solid 3.3 percent over the past 12 months,” Goss said.

South Dakota: South Dakota’s overall index slipped to 56.6 last month from 56.8 in January. Index components were new orders at 59.4, production or sales at 61.9, delivery lead time at 50.2, inventories at 54.2 and employment at 57.1. “Average hourly earnings for South Dakota private-sector workers improved by a tepid 1.3 percent over the past 12 months. Both durable-and nondurable-goods producers in the state are expanding at a healthy pace,” he said.