Region Index Shows Manufacturing Jobs Openings Sunk in February

Creighton University released its Mid-America Business Conditions Index which shows the region dropped back below growth neutral and a decrease in job openings and layoffs over the past 12 months for all states in the region.

The Business Conditions Index, which uses the same methodology as the National Institute for Supply Management and ranges between 0 and 100 with 50.0 representing growth neutral, dropped to 49.1 from 50.9 in January, according to Creighton University’s February 2024 survey.

“The overall index, much like the U.S. reading, has hovered around growth neutral for last three months. Additionally, supply managers remained pessimistic regarding the 2024 outlook with only 14.3 percent expecting a 2024 economic expansion,” Ernie Goss, Ph.D. at Creighton University said.

In January, the employment gauge for the region dropped to its lowest reading since June 2020. The February reading has since increased but only to a weak 42.9. Over the past 12 months, the region’s job openings declined by 156,000, or 16.3 percent, while layoffs fell by 2,000, or 1.1 percent, according to the U.S. Bureau of Labor Statistics.

The wholesale inflation gauge fell to 61.9 compared to January’s 71.7.

“Even though the inflation rate and job growth have been trending lower, I do not expect a Federal Reserve rate cut until June or July of this year,” Goss said.

Kansas

The Kansas Business Conditions Index for February dropped to 50.7 from 54.0 in January. Components of the leading economic indicator from the monthly survey of supply managers for February were: new orders at 50.7; production or sales at 40.6; delivery lead time at 57.9; employment at 45.1; and inventories at 65.5. Over the past 12 months, according to U.S. Bureau of Labor Statistics data, the state’s job openings sank by 1,600, or 16.7 percent, while layoffs fell by 700, or 11.1 percent.

Missouri

The state’s February Business Conditions Index fell to 46.6 from 50.5 in January. Components of the overall index from the survey of supply managers for February were: new orders at 39.7; production or sales at 43.7; delivery lead time at 52.4; inventories at 58.5; and employment at 38.5. Over the past 12 months, according to U.S. Bureau of Labor Statistics data, the state’s job openings sank by 51,000, or 25.1 percent, while layoffs fell by 300, or 7.5 percent.