A survey of business leaders and supply managers in nine Midwestern states shows rural areas in the region are being hit hard by what may be another dip into recession. November's Business Conditions Index for the Mid-America region stood at 47.5, down from 51.8 in October and 56.2 in September, The Associated Press reports. The index ranges from zero to 100, with a score above 50 suggesting economic growth in the next three to six months and a score below 50 suggesting an economic contraction over the same period.
"The significant decline in farm income for 2009 continues to weigh on firms with strong ties to agriculture," Ernie Goss, a Creighton University economist who oversees the monthly survey, told the AP. "For example, agriculture-equipment manufacturers have been hard hit by farmers' reluctance to purchase new equipment. This downturn has been particularly significant for rural areas of the region." The Mid-American region includes Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
Goss tells the AP that 41 percent of Midwest supply managers anticipate making layoffs at their companies in the coming months and only 48 percent expect to receive pay increases in 2010. Despite the other bleak information, survey respondents remained optimistic. The confidence index was down only slightly from 68.9 in October to 68 in November. (Read more)
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