Manufacturing orders up in Midwest

Survey finds imports up despite weak dollar

? A weakened U.S. dollar, which is making American goods less expensive abroad, has led to a rise in manufacturing orders and export orders across the Midwest, according to a monthly survey released Tuesday.

Meanwhile, the decline of the dollar’s value has done little to restrain imports in the region, said Ernie Goss, a Creighton University economics professor who conducts the survey.

“I expect the trade picture to improve in the coming months as regional firms increasingly turn to domestic suppliers because of the higher import prices,” Goss said.

The overall index for the Mid-America Business Conditions Survey rose to 60.7 in January from December’s 59 — an increase Goss credited to the rise in new orders and export orders.

A reading above 50 on the index indicates the industry is growing, while a reading below 50 means manufacturing activity is slowing.

Goss surveys business leaders and manufacturers in nine states, including Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

For the first time since July of last year, the overall business conditions index in Kansas increased, rising to 54.3 from December’s 48.6.A reading above 50 indicates the industry is growing, while a reading below 50 means manufacturing activity is slowing.Components of January’s index: new orders at 60, production at 55, delivery speed at 50, inventories at 50 and employment at 50. New export orders were 55, and imports were 50.

The survey indicated the new orders index for January rose to 62.9 from 61.2 in December. Export orders also rose to 58.1, up from December’s 57.8.

The survey also indicated that new hiring in the region continues to rise, with an index of 60.3, compared to December’s 53.8. The region added 142,000 workers to its payrolls in 2004.