Omaha, Neb. ? Midwest business leaders are losing confidence in the regional economic outlook as corporate accounting scandals rock the business world, according to a June survey of company officials in a nine-state region released Monday.

Those scandals such as ones at Enron and accounting firm Arthur Andersen coupled with rising inflation led to a business confidence index of 68.8 among supply managers and business leaders surveyed in June. That compares to readings of 76.5 in May and 77.4 in April.

	For the second straight month, the overall index in Kansas rose above 50, reaching 53.4. That’s up from May’s 51.9. Other indexes were healthy, with new orders of 55 and production of 61.7. An index of above 50 signifies economic growth, while a figure below 50 indicates a sluggish economy.

An index of above 50 signifies economic growth. A figure below 50 indicates a sluggish economy.

While the June confidence reading is in the healthy range, “we haven’t seen that large a drop in confidence since the terrorist attacks of September 2001,” said Ernie Goss, a Creighton University economics professor who conducts the survey.

Even as confidence slipped, the survey showed a continuing economic rebound as employment numbers improved throughout the nine-state region.

The region’s employment index rose to 52.2 the highest reading for the index since September 2000.

The overall index for June stood at 56.8, down slightly from May’s solid 57.9. It was the fifth straight month that the index has risen above 50.

However, the Midwest and national surveys point to rising inflationary pressures, Goss said. Prices paid for raw materials and supplies were up last month, with an index of 69 its highest level since June 2000.