October Mid-America Index expands to highest level in 16 years

The index, which covers nine states including Kansas and Missouri, advanced above growth neutral and to its highest level in 16 years. Kansas’ October index increased to 68.7 from 63.0, while Missouri’s advanced to 78.0 from September’s 74.4.

October survey highlights include:

  • The regional Business Conditions Index expanded to its highest level in 16 years.
  • Almost 78.6% of supply managers reported shortages of qualified workers to fill open positions at their firms in October.
  • Very strong export and import readings for the month.
  • Employment gauge soared to its highest level in more than two decades.
  • More than three of four supply managers reported negative covid-19 impacts.

The Kansas Business Conditions Index for October increased to 68.7 from 63.0 in September. Components of the leading economic indicator from the monthly survey of supply managers were: new orders at 76.9, production or sales at 74.1, delivery lead time at 68.6, employment at 66.1, and inventories at 58.0. “Validating a rapidly improving state economy, U.S. Department of Labor data indicate that the state’s insured unemployment rate stood at 0.7% in the second week of March, peaked at 14.6% in the third week of May, and fell to 4% in the third week of October,” said Goss.

The October Business Conditions Index for Missouri advanced to 78.0 from September’s 74.4. Components of the overall index from the survey of supply managers for October were: new orders at 84.6, production or sales at 83.2, delivery lead time at 78.8, inventories at 55.6, and employment at 87.9. “Validating a rapidly improving state economy, U.S. Department of Labor data indicate that the state’s insured unemployment rate stood at 0.8% in the second week of March, peaked at 9.5% in the third week of May, and fell to 1.9% in the third week of October,” said Goss.