The Associated Press July 1, 2010, 3:57PM ET

Midwest economy: A state-by-state glance for June

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 of the May survey in the Mid-America region:

Arkansas: The state's leading economic indicator continues to point to growth in the months ahead. Arkansas' overall index for June slipped to 55.9 from 56.8 for May. Components of the overall index for June were new orders at 60.2, production or sales at 56.7, delivery lead time at 63.4, inventories at 50.1, and employment at 49.2. "We are tracking a definite improvement in the Arkansas economy. Durable goods manufacturing, particularly firms tied to international markets, have experienced very positive results of late. I expect recent rapid increases in hours worked by current workers to translate into new hiring in the months ahead," Goss said.

Iowa: For the sixth straight month, Iowa's overall index was above growth neutral. The index, a leading economic indicator from a survey of supply managers, dipped to a regional high 70.1 from May's 70.3.Components of the overall index for June were new orders at 87.0, production or sales at 83.3, delivery lead time at 59.2, employment at 62.3, and inventories at 58.9. "Durable goods manufacturers are experiencing very strong growth while nondurable goods producers are reporting somewhat slower activity. Firms in the state have delayed hiring by increasing the hourly work week significantly over the past several months," Goss said.

Kansas: The leading economic indicator for Kansas declined for the first time since October 2009. The June overall index declined to 51.1 from May's 62.3 and April's 62.1. Components of the overall index for June were new orders at 50.5, production, or sales, at 48.2, delivery lead time at 68.0, employment at 43.8, and inventories at 45.2. "Both nondurable and durable goods producers continue to report healthy growth in activity. However, the stronger U.S. dollar will have some negative impacts on firms selling abroad, especially in Europe in the months ahead," Goss said.

Minnesota: Minnesota's leading economic indicator, based on a survey of supply managers, continues to point to advancing economic conditions ahead. The overall index climbed to 65.5 from May's 64.1 and April's healthy 62.4. This was the 11th straight month that Minnesota's index has risen above growth neutral. Components of the overall index for June were new orders at 68.1, production, or sales, at 70.6, delivery lead time at 66.1, inventories at 55.1, and employment at 67.5. "While both durable and nondurable goods manufacturers are reporting very healthy economic activity, nondurable producers, especially those tied to international markets, are experiencing upturns in overall business gains. Average weekly hours worked by workers in manufacturing has been growing over the past several months," Goss said.

Missouri: For the 12th straight month, Missouri's overall index climbed above growth neutral. The index from a survey of supply managers slipped to a still vigorous 58.5 from May's 59.9.Components of the overall index from the June survey were new orders at 61.8, production, or sales, at 65.1, delivery lead time at 57.5, inventories at 56.9, and employment at 51.3. "Although hiring among manufacturers in the state has not been as strong as expected, we continue to track growth in overall business activity in both durable and nondurable producers in the Missouri," Goss said.

Nebraska: For a 10th consecutive month Nebraska's overall index, expanded above growth neutral. The June reading from a survey of supply managers expanded to 65.3 from 64.1 in May. Components of the overall index for June were new orders at 77.3, production, or sales, at 78.1, delivery lead time at 58.1, inventories at 51.6, and employment at 61.2. "While manufacturing employment growth has leveled off for now, durable and nondurable producers in Nebraska report solid increases in business activity. Most of the recent job growth has been in value added services. However, I do expect recent upturns in hours worked to translate into increases in manufacturing hiring," Goss said.

North Dakota: North Dakota's leading economic indicator once again moved above growth neutral. The index, based on a survey of supply managers in the state, slid to 54.6 from May's 59.2. Components of the overall index for June were new orders at 45.6, production, or sales, at 56.9, delivery lead time at 62.7, employment at 59.3, and inventories at 48.6. "Growth tied to the state's energy sector has been an important component of North Dakota's overall economic expansion. Durable goods producers reported healthy business expansions over the past several months. Based on our survey results, this expansion should continue at a solid pace," Goss said.

Oklahoma: For a sixth straight month, Oklahoma's leading economic indicator from a monthly survey of supply managers climbed above growth neutral. The overall index climbed to 67.4 from May's 59.8 and April's strong 59.7. Components of June's overall reading were new orders at 70.9, production, or sales, at 77.9, delivery lead time at 80.9, inventories at 60.4, and employment at 46.9. "Manufacturers in the state have upped the hours worked to accommodate expansions in business activity. I expect this to translate into both durable and nondurable goods producers in Oklahoma to add to their work forces in the months ahead," Goss said.

South Dakota: South Dakota's leading economic indicator continues to point to economic expansion. The index, based on a survey of supply mangers in the state, rose to 66.8 from May's 67.1. Components of the overall index for June were new orders at 71.7, production, or sales, at 69.7, delivery lead time at 62.9, inventories at 64.7, and employment at 65.0. "Manufacturers have added jobs and increased the hourly work week significantly in the state to accommodate business expansion. Supply managers in South Dakota remain optimistic regarding the economic expansion," Goss said.


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