Omaha, Neb. ? The Midwest’s manufacturing sector grew in April, but so did inflationary pressures, a survey of executives indicated Monday.

The overall index for the Mid-America Business Conditions Survey climbed to its highest level since the survey began nearly 10 years ago with a reading of 70.3, up from March’s record 69.7, Creighton University economist Jim Knudsen said.

An index reading above 50 indicates expansion, while one below 50 indicates a contraction in manufacturing activity.

The prices paid index for manufacturing materials — including imported goods, steel, metal and energy products — rose to a record 89.8, up from 87.5 in March, Knudsen said.

He predicted that an interest rate increase to stop any threat of excessive inflation could come as early as the June meeting of the Federal Reserve.

Knudsen surveys manufacturing managers and business leaders in nine states in the Midwest: Kansas, Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

The economic outlook for the next six to nine months is bright for Kansas, he said.

The state’s overall index rose slightly to 71.6 from March’s 71.2. Readings for components of the overall index were 81.3 for new orders, 80 for production, 60 for employment, 62.5 for inventories and 60 for delivery time, Knudsen said.