Mid-America economy staggers amid weak job growth

CHICAGO, Nov 1 (BestGrowthStock) – Slower-paced economic growth is
in store for nine U.S. Midwest and South-Central states,
according to a survey of supply managers on Monday.

Creighton University’s Business Conditions Index fell to
52.3 in October from 56.3 in September. A reading of 50 is
considered growth neutral, while a reading above that signals
expansion over the next three to six months.

“Since July, the leading economic indicator has been
trending downward and indicates slower growth in the months
ahead. Even so, surveys are not pointing to a double dip
recession,” said Creighton University Economics Professor Ernie
Goss in a statement.

That, however, could change if the federal income tax cuts
that expire at year end are not extended by Congress, he said,
adding a tax increase “could push the fragile regional economy
back into recession.”

Meanwhile, the survey’s employment index dipped to 50.6 in
October from 53.2 in September, pointing to “positive, but very
weak job growth in the months ahead,” Goss said.

The prices-paid index, which tracks costs of raw materials
and supplies, remained in inflationary territory at 69.9 last
month, down slightly from 71.1 in September.

Supply managers were surveyed in Arkansas, Iowa, Kansas,
Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South
Dakota.

The Omaha, Nebraska-based Creighton Economic Forecasting
Group has conducted the monthly survey since 1994, using the
same methodology as the National Institute for Supply
Management.
(Reporting by Karen Pierog, Editing by Chizu Nomiyama)

Mid-America economy staggers amid weak job growth