Omaha, Neb. ? The Midwest’s manufacturing sector held on strong in December, though seasonal declines in heavy manufacturing pushed it below levels achieved earlier in the year, according to a manufacturing index released Monday.

The Mid-America Business Conditions Index declined to 59 from November’s 63.8, and it was the lowest reading of the year. But it remained well above growth-neutral 50, said Ernie Goss, Creighton University economics professor, who conducts the monthly survey of supply managers and business leaders.

Kansas didn’t fare as well as its neighbors. The state’s index fell for the fifth straight month to 48.6, the region’s lowest, as the Kansas economy posted regional lows for new orders, production and delivery speed.

“Despite somewhat cooler economic conditions in December, surveys over the past several months signal rising growth in Kansas for the first half of 2005,” Goss said. “Of course, any significant pullbacks resulting from the Sprint-Nextel merger would alter this.”

Nationally, manufacturing activity expanded for the 19th consecutive month in December, suggesting that the industrial sector entered the new year with solid strength behind it.

The Institute for Supply Management said its main index measuring nationwide industrial activity rose to 58.6 in December from 57.8 in November. The December performance was slightly better than expected.

In the Midwest, strong readings for new orders at 61.2 and production at 65.1 were primarily responsible for December’s strong reading, Goss said.

The prices-paid index increased to 84.4 from November’s 81.4, indicating inflationary pressures that probably would be met with another interest rate increase when the Federal Reserve Board meets in February, Goss said.

Employers in the nine-state region added workers in December, but the pace was down to a reading of 53.8 compared with November’s 61.5, Goss said.

Record farm income last year will ripple through the region in the first half of the new year, Goss said.

“For example, 2004 farm implement sales are up more than 30 percent from 2003, according to survey participants in this sector,” Goss said. “This growth will be especially important for the nonmetropolitan areas of Kansas, Iowa, Nebraska, North Dakota and South Dakota.”