Regional business activity slumped in May

Business conditions in a nine-state area that includes Kansas and Missouri slipped last month from April, signalling slower economic growth heading into second half of 2015.

Creighton University’s Mid-America Business Conditions, which is based on interviews with regional manufacturing supply managers, slumped to 50.4 in May from April 52.7 reading. Any reading above 50 is considered positive economic growth.

All nine states in the region reported declines over the month.

Ernie Goss, director of Creighton’s economic forecasting group, said its survey is pointing to “positive but slow economic growth” over the next three to six months. “Firms linked to energy and agriculture are experiencing pullbacks in economic activity,” Goss said. “Job growth in Oklahoma and North Dakota...has moved into negative territory.”

The business index largely monitors employment, wholesale prices, manager confidence, product inventories and trade. The employment measure “remained in a range indicating slightly negative to stagnant job growth for manufacturing and value-added service firms in the region.”

Creighton’s report was released the same day as a similar survey from the Institute for Supply Management, a national trade group of purchasing managers. Its manufacturing index rose to 52.8 last month from 51.5 in April. That’s the highest reading since February.

This story was originally published June 1, 2015 at 11:37 AM with the headline "Regional business activity slumped in May."