Regional manufacturing activity improves, but still weak

Manufacturing activity in nine Midwest states expanded in January for the first time in six months, but overall conditions remain weak, according to a Creighton University report released Monday.

The Mid-American Business Conditions Index jumped to 48.3 in January from 39.5 in December. The index ranges from zero and 100, and any score above 50 suggests economic growth. A score below that suggests weakness.

In both Kansas and Missouri, businesses reported improvement in January from December. The survey also covers Arkansas, Iowa, Minnesota, Nebraska, North Dakota, Oklahoma and South Dakota.

Creighton University economist Ernie Goss oversees the survey, and he says falling agriculture and energy commodity prices and global economic uncertainty continue “to restrain supply managers’ expectations of future economic conditions.”

Manufacturing employment in the region remains weak, the report said. “Areas and industries heavily dependent on durable goods manufacturing, especially those linked to exports, agriculture and energy are experiencing the largest losses,” Goss said.

The regional results closely follow the national trend. The Institute for Supply Management said Monday that U.S. factory activity shrank in January for a fourth straight month because of the strong dollar and weak demand overseas for U.S.-made goods.

The ISM’s manufacturing index ticked up to 48.2 from a revised 48 in December. The index has remained below 50 since September.

This story was originally published February 1, 2016 at 1:16 PM with the headline "Regional manufacturing activity improves, but still weak."