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Midwest economy: November state-by-state glance

December 2, 2019

OMAHA, Neb. (AP) — 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 growth in that factor over the next three to six months.

Here are the state-by-state results for November:

Arkansas: The state’s overall index sank to 49.7 from October’s 53.4. The components of the index were new orders at 47.8, production or sales at 43.4, delivery lead time at 56.4, inventories at 62.4, and employment at 38.4. “Over the past 12 months Arkansas’ manufacturing sector has boosted hourly wages by 4.6%, fourth in the nine-state region. Both durable and nondurable goods are shedding jobs at a slightly negative pace,” Goss said.

Iowa: The state’s overall index slipped to 49.2 in November from October’s 53.5. Components of the overall index were new orders at 46.8, production or sales at 43.7, delivery lead time at 61.9, employment at 37.9, and inventories at 55.5. “Over the past 12 months the state’s manufacturing sector has lifted hourly wages by 3.2%, seventh in the nine-state region. Agriculture equipment manufacturers are adding jobs at a slow pace, while transportation equipment producers are losing jobs at a measured pace,” Goss said.

Kansas: The overall Kansas index decreased to 51 in November from October’s 54.6. Index components were new orders at 52.1, production or sales at 42.8, delivery lead time at 63.2, employment at 39.3, and inventories at 57.7. “Over the past 12 months the state’s manufacturing sector has increased hourly wages by 2.3%, ninth in the nine-state region. Aerospace product and parts manufacturers are adding jobs at a solid pace, while food producers are experiencing flat job levels,” Goss said.

Minnesota: The overall Minnesota index slipped to 50.9 from 51.3 in October. Index components were new orders at 47, production or sales at 52.9, delivery lead time at 61.8, inventories at 55.2, and employment at 37.7. “Over the past 12 months the state’s manufacturing sector has lifted hourly wages by 5.6%, third in the nine-state region. Medical equipment producers are adding jobs at a solid pace, while food processors are shedding jobs,” Goss said.

Missouri: The overall index for Missouri sank to 48.4 from October’s 53.6. Index components were new orders at 46.7, production or sales at 43.9, delivery lead time at 59.8, inventories at 55.1, and employment at 37.6. “Over the past 12 months the state’s manufacturing sector has boosted hourly wages by 2.4%, eighth in the nine-state region. While manufacturing job losses for November were noteworthy, metal products producers and computer and component manufacturers are adding jobs at a solid pace,” Goss said.

Nebraska: The overall Nebraska index fell to 48.2 from October’s 53.7. Index components were new orders at 44.6, production or sales at 44.3, delivery lead time at 61.1, inventories at 54.1, and employment at 36.9. “Over the past 12 months the state’s manufacturing sector has lifted hourly wages by 3.8%, fifth in the nine-state region. Farm machinery manufacturers are shedding jobs, but at a slight pace, while food producers are adding jobs at a positive rate,” Goss said.

North Dakota: The overall index for North Dakota rose slightly to 50 from October’s 49.7. Index components were new orders at 49.4, production or sales at 43.4, delivery lead time at 62.4, employment at 38.5, and inventories at 56.4. “Over the past 12 months the state’s manufacturing sector has boosted hourly wages by 6.2%, second in the nine-state region. Durable goods manufacturers are adding jobs at a positive pace while nondurable goods producers are losing jobs at a slow pace,” Goss said.

Oklahoma: The overall Oklahoma index for November sank to 47.8 from October’s 48.7. Index components were new orders at 43.6, production or sales at 44.5, delivery lead time at 60.9, inventories at 53.6, and employment at 36.6. “Over the past 12 months the state’s manufacturing sector has increased hourly wages by 3.5%, sixth in the nine-state region. Both durable and nondurable goods manufacturers are experiencing job losses,” Goss said.

South Dakota: The overall index for South Dakota fell to 48.9 from October’s 52.6. Index components were new orders at 37.5, production or sales at 43.9, delivery lead time at 61.7, inventories at 55, and employment at 46.6. “Over the past 12 months the state’s manufacturing sector has lifted hourly wages by 8.7%, first in the nine-state region. Until November, both durable and nondurable goods manufacturers had been adding jobs at a solid pace,” Goss said.