Organic farmer Mark Lumpe cuts an assortment of baby

Omaha, Neb. ? The new jobs created by ethanol plants and strong farm income helped the economy remain strong in Kansas and eight other states in the Midwest, according to a monthly survey of supply managers and business leaders.

A decline in inflation pressures also helped the June business conditions index in the region increase to 60 from May’s 58.3.

The Business Conditions Index ranges between 0 and 100. An index greater than 50 indicates an expanding economy during the next three to six months.

Creighton University economist Ernie Goss, who oversees the survey, said it appears that growth in the region will continue to outpace the nation as a whole.

Other states in the survey are Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

The prices-paid index, which tracks the cost of raw materials and supplies in the nine-state region, declined for the second month in a row, but significant inflationary pressures remain at the wholesale level with food and oil prices increasing. In June, the prices-paid index fell to 76.2 from May’s 78.9 and April’s 81.7.

“Higher energy and food prices continue to restrain confidence among supply managers,” Goss said.

The managers’ confidence level about the region’s economy is measured by an index that grew to 55.7 from May’s 51.9.

The employment index remained strong in June at 59 even though it decreased slightly from May’s 59.8.

“For the first half of 2007, job growth in the Mid-American region has exceeded national employment growth by three-tenths of a percent,” Goss said. “I expect this gap to widen slightly in the second half of 2007.”

Trade numbers remained strong for June. The index for new export orders hit 60, up from May’s 59.3. Imports slipped to a still-brisk 60.4 from May’s 62.1.

“The weak dollar, especially against the euro, has pushed exports higher,” Goss said.

Other components of the regional index were: new orders at 63.7, up from May’s 59.8; production at 64.0, up from 61.1; inventories at 52.9, down from 57.3; and delivery lead time at 51.9, down from 52.4.