The regional economy remains healthy, but supply chain disruptions are expected to continue, according to a monthly survey of business leaders in nine Midwest and Plains states including North Dakota.
The overall index for April of the Creighton University Mid-America Business Conditions survey sank to 65.9 from March’s strong 71.3, but it remained above growth-neutral for a 23rd straight month. Any score above 50 on the survey’s indexes suggests growth, while a score below 50 suggests recession.
“The region continues to add manufacturing activity at a healthy pace but with significant inflationary pressures,” said Creighton University economist Ernie Goss, who oversees the survey. “Supply chain disruptions and labor shortages remain as chief challenges for firms in the region.”
Four of 10 supply managers expect supply chain disruptions to worsen, while only two of 10 anticipate an improvement.
The April index for North Dakota fell from 75.7 in March but remained above growth-neutral at 64.1. Components of the overall index for April were: new orders at 69.8, production or sales at 62.8, delivery lead time at 70.3, employment at 60.4 and inventories at 57.0.
People are also reading…
Both durable and nondurable goods producers have expanded for 2022. Over the past 12 months, the federal Bureau of Labor Statistics recorded that North Dakota average hourly manufacturing wages expanded by 6.7%, above the regional median of 6.4%.
Regionally, the survey’s business confidence index, which looks ahead six months, rose to a still-weak 33.4 from 31.7 in March.
“Concerns about the impacts of the Russia-Ukraine war, higher interest rates, soaring inflation and supply chain disruptions combined to push business confidence well below growth-neutral,” Goss said.
The full report can be found at https://bit.ly/3LFftkQ.
