Associated Press reports:
OMAHA, Neb. (AP) – A monthly survey of business leaders suggests the economy will continue slowing in nine Midwest and Plains states because of weakness in agriculture and energy businesses.
The overall economic index for the region declined to 45.5 in September from August's 47.8. The survey results are compiled into a collection of indexes ranging from zero to 100. Any score below 50 suggests the economy is weakening.
Creighton University economist Ernie Goss said trade figures for the region fell dramatically in September after the Hanjin Shipping bankruptcy caused disruptions.
“Supply managers reported the Hanjin Shipping bankruptcy reduced both exports and imports for the month,” Goss said. “Global economic weakness added to September trade difficulties.”
The export index fell to 33.8 last month from August's 50.1. And the import index fell to 43.4 in September from August's 45.8.
A number of Hanjin ships were temporarily stranded at sea after the company's bankruptcy because it couldn't guarantee it would be able to pay dock fees and fuel bills for unloading. Goss said that also made it harder for businesses to replenish their inventories. So the inventory index fell to 40.1 in September from August's 52.3.
Goss said energy and agriculture manufacturing is especially weak in the region.
“Due to the heavy dependence of the region on these two sectors, I will expect to see the regional economy to continue to underperform the national economy,” Goss said. The survey covers Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
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Photo courtesy of USDA NRCS
