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 an expanding economy over the next three to six months.
Here are area results for February:
Iowa: Iowa’s overall index rose to a regional high of 64.5 from January’s 59.1. Components of the index were new orders at 66.5, production or sales at 69.3, delivery lead time at 64.7, employment at 60.2 and inventories at 61.9. Strong growth was recorded for metal manufacturers and food processors. “Even as domestic sales of agriculture equipment have cooled, international sales of farm and earthmoving equipment have boosted business activity of agriculture equipment manufacturers in the state,” Goss said. “On the other hand, firms linked to vehicle manufacturing recorded pullbacks in business activity,” he said.
Minnesota: The overall index advanced to 64.1 from 57.7 in January. Components of the index from the February survey were new orders at 63.3, production or sales at 68.3, delivery lead time at 62.4, inventories at 72.5 and employment at 54.0. “Expansions for durable-goods manufacturers, including medical equipment producers, more than offset pullbacks for food processors,” Goss said.
Nebraska: After remaining below growth neutral for the last three straight months of 2013, Nebraska’s overall index has risen above 50 for the first two months of 2014. The index hit 53.9 in February, compared with 52.2 in January. Components of the index were new orders at 55.6, production or sales at 57.8, delivery lead time at 47.1, inventories at 51.3 and employment at 57.7. “Durable-goods manufacturers, including metal manufacturers, detailed positive growth,” Goss said. Even as domestic sales of agriculture equipment have cooled, international sales of farm and earthmoving equipment have boosted business activity of agriculture equipment manufacturers in the state, and food processors are experiencing healthy growth, he said.
North Dakota: North Dakota’s overall index rose to 57.6 from January’s 56.5. Components for February were new orders at 56.8, production or sales at 51.6, delivery lead time at 67.8, employment at 59.0 and inventories at 52.9. “Advancing economic conditions among durable-goods producers and business services firms more than offset somewhat weaker business conditions for food processors in the state,” Goss said.
South Dakota: After moving below growth neutral in November 2012, South Dakota’s overall index has been above growth neutral each month since. The overall index in February rose to 60.9 from January’s 55.1. Components of the overall index were new orders at 59.4, production or sales at 67.3, delivery lead time at 50.6, inventories at 61.9 and employment at 65.1. “Manufacturers in the state continue to add jobs and increase the hours worked for current employees. Wholesalers in the state are experiencing upturns in business activity,” Goss said.