Omaha, Neb. ? While the Midwest economy appears to have pulled out of a recession, businesses in the region were not rushing to hire more employees in March, according to a survey of company officials released Monday.

Fewer new jobs were reported in March than in February in the monthly Mid-American Business Conditions survey.

“Business leaders are waiting to see improved profit margins and a sustained economic bounce before they increase hiring,” said Ernie Goss, a Creighton University economics professor who conducts the monthly survey.

Businesses are expanding their output by having employees work more hours per week rather than hire more employees, Goss said.

The survey, which includes business managers in a nine-state region, including Kansas, indicated a growing economy for the second-straight month in March and a rebound for the second quarter of 2002, Goss said.

Business confidence among those surveyed increased to its highest level since the survey started in September 1994, Goss said.

“Low interest rates and expanding business and government spending have pushed assessments of the economy over the next six to nine months much higher,” Goss said.

The survey’s overall index dropped to 54 from February’s 56.2, which had been a sharp increase from January’s 47.7. An index of above 50 signifies economic growth, while a figure below 50 indicates a sluggish economy.

While the overall outlook remains strong, a rise in the survey’s prices paid index to 60 Â the highest since April 2001 Â was somewhat troubling, Goss said.

“Due to increased price pressures recorded at the wholesale level, I expect the Federal Reserve to raise interest rates at its May meeting,” Goss said.

Arkansas and Iowa led with the most economic growth in March, according to the survey.