MITCHELL, SD (Mitchell Now) — A new monthly survey shows the regional manufacturing economy remains stalled, with conditions “moving sideways” heading into the end of the year. Creighton University’s Mid-America Business Conditions Index posted a slightly negative reading for November, signaling sluggish economic momentum across the nine-state region.
Economist Dr. Ernie Goss, who oversees the survey of manufacturing supply managers, said the sector’s slowdown is closely tied to weakness in the agricultural economy.
“Our survey of manufacturing supply managers in nine mid-America states are not good,” Goss said. “It’s moving sideways, not what you’d like to see. And we just have, of course, right here in our neighbor, Iowa, John Deere just announced that their sales are down, their profits are down.”
South Dakota’s index reading closely matched the regional trend. However, one indicator stands out in the state: the number of workers receiving unemployment compensation is running about five percent higher than at this time last year.
Goss said ongoing softness in both manufacturing and agriculture continue to put pressure on rural economies, and the survey shows no clear sign of a near-term rebound.