Survey indicates Midwest economy remains soft

? The Midwest economy remained soft in November, although inflation was down and confidence was up, according to a survey of business leaders in nine states.

The overall index in the monthly Mid-America Business Conditions Survey dipped to 50.8 from October’s 53.1, said Creighton University professor Ernie Goss, who conducts the monthly survey.

With an index that ranges between 0 and 100, the survey’s numbers below 50 indicate contraction in manufacturing, while numbers above 50 indicate expansion.

“The global economic slowdown continues to take its toll on businesses that depend heavily on sales abroad,” Goss said Monday, citing an export orders index of 46.8, down from October’s 49.2.

Durable goods manufacturers in items such as automobiles reported solid business, Goss said. But weakness in nondurable goods pushed the new orders index down to 51.6 from October’s 59.4, he said.

The inflation index for the region was down to its lowest level since February, at 57.1 from October’s 59.4, Goss said. Confidence expressed by business managers and leaders rose in November to 59.4, up from October’s 57.

The employment index rose slightly in November to 47.3 from October’s 46.4, but it remained below growth-neutral 50 for the seventh time this year, Goss said.

The survey indicates companies generally are shedding jobs despite growth in new orders, while meeting production demands with increased hours and productivity among current employees, Goss said.

Arkansas’ overall index of 37 and Oklahoma’s 36.1 were among the lowest in November.

Kansas’ overall index rose for the second consecutive month to 48.5 from October’s 43.2.

States included in the survey are Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.