- Associated Press - Monday, August 1, 2016

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 for July:

Arkansas: Arkansas’ overall index for July fell to 47.3 from June’s 48.5. Components of the index were new orders at 41.0, production or sales at 46.8, delivery lead time at 57.6, inventories at 44.3 and employment at 46.9. Job losses for durable-goods producers more than offset gains for nondurable-goods manufacturers for July, Goss said.

Iowa: The state’s overall index dropped to 47.9 from 50.3 in June. Components of the index were new orders at 41.1, production or sales at 46.9, delivery lead time at 58.3, employment at 47.4 and inventories at 45.8. Over the past 12 months, Iowa has lost almost 7,000 manufacturing jobs, with all losses recorded among durable-goods firms. “Losses have been significant for firms linked to agriculture, such as agricultural equipment producers and metal manufacturers. On the other hand, food processors in the state continue to expand, according to July survey results,” he said.

Kansas: The state’s overall index slipped to 47.0 from 48.4 in June. Components of the overall index in July were new orders at 40.9, production or sales at 49.9, delivery lead time at 54.0, employment at 46.7 and inventories at 43.7. Kansas has lost about 1,000 manufacturing jobs over the past year, with durable-goods producers suffering almost all of the reductions, Goss said.

Minnesota: Minnesota’s overall index dipped to 51.2 in July from 51.6 in June. Components of the index were new orders at 48.1, production or sales at 47.4, delivery lead time at 55.1, inventories at 49.9 and employment at 55.4. “Minnesota’s manufacturing sector is adding jobs, with nondurable-goods producers’ job gains more than offsetting job losses for heavy or durable-goods producers,” Goss said. But technology manufacturers, such as medical equipment producers, continue to experience growth, he said.

Missouri: The state’s overall index dropped to a regional high of 52.3 from June’s 54.0, also a regional high. Components of the index were new orders at 47.8, production or sales at 51.7, delivery lead time at 59.9, inventories at 49.9 and employment at 52.2. “After expanding at a brisk pace beginning in the second half of 2013, vehicle manufacturers and related firms are now shedding jobs. However, more than offsetting these losses have been gains for nondurable-goods producers,” Goss said.

Nebraska: Nebraska’s overall index plunged to 47.0 from 51.5 in June. Components of the index were new orders at 44.4, production or sales at 46.7, delivery lead time at 58.9, inventories at 43.7 and employment at 41.4. Gains among nondurable-goods producers, including food processors, were more than offset by losses from durable-goods manufacturers, Goss said.

North Dakota: The state’s overall index declined to 40.8, a regional low, from June’s 41.3, also a regional low. Components of the overall index were new orders at 41.2, production or sales at 45.2, delivery lead time at 45.9, employment at 42.1 and inventories at 29.5. “North Dakota is unique among the nine regional states because it has a heavy dependence on both agriculture and energy, two sectors that continue to experience negative growth,” Goss said. “As a result, North Dakota’s durable- and nondurable-goods producers are shedding jobs and experiencing pullbacks in economic activity,” he said.

Oklahoma: Oklahoma’s July overall index sank to 45.2 from 48.1 in June. Components of the index were new orders at 46.8, production or sales at 46.3, delivery lead time at 51.3, inventories at 39.6 and employment at 42.1. Over the past 12 months, Oklahoma has lost more than 12,000 manufacturing jobs, with 90 percent of the losses recorded among durable-goods firms. “Losses have been significant for metal manufacturers with links to the energy sector. On the other hand, food processors in the state continue to expand sales, but with only slight net new hiring,” Goss said.

South Dakota: The state’s overall slipped to 50.2 from 51.1 in June. Components of the index were new orders at 41.6, production or sales at 47.5, delivery lead time at 61.9, inventories at 51.0 and employment at 49.1. “In terms of employment, South Dakota’s manufacturing sector has added almost no net new jobs even as producers expanded sales and production. I expect the state’s manufacturing sector to add jobs in the second half of 2016 with the overall state economy expanding at a slow but positive pace,” Goss said.


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