Index Still Positive; Inflation Continues to Concern

Since declining to a record low in April of 2020, the Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, has remained above growth neutral for 15 of the last 16 months.

The Business Conditions Index fell to a still-healthy 68.9 from July’s 73.1.

The regional employment index remained above growth neutral for August, but sank to 64.6 from July’s two decade high of 67.2.

The wholesale inflation gauge for the month slipped to 95.0 from July’s record high 98.7.

Looking ahead six months, economic optimism dipped to 53.5 from July’s 53.6.

This is the third straight month that the index has declined.

The Kansas Business Conditions Index for August declined to 70.4 from 73.3 in July.

Doctor Ernie Goss, director of Creighton University’s Economic Forecasting Group, noted that supply chain bottlenecks and labor shortages remain obstacles to growth.