Region Manufacturing Index Shows Fewer Job Openings, Third Straight Month

Posted April 1, 2024

Creighton University released its Mid-America Business Conditions Index for March and shows the region has not broken the growth threshold and the manufacturing sector is losing more workers.

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 49.6 from 49.1 in February, according to Creighton University’s March 2024 survey.

“The overall index, much like the U.S. reading, has hovered around growth neutral for the last four months. Additionally, supply managers remained pessimistic regarding the 2024 outlook with approximately 68 percent expecting a 2024 economic recession,” Ernie Goss, Ph.D. at Creighton University said.

The employment gauge has also yet to climb above growth neutral. In March the employment index fell to 40.9, down from February’s 42.9m marking a three-month streak of sub-growth. Over the past 12 months, job openings for unemployed workers in the country are 2.1, down from 2.5 in the previously recorded 12 months, according to the U.S. Bureau of Labor Statistics.

“Despite labor shortages and elevated inflationary pressures, only 13.3 percent of hiring manufacturers reported boosting entry level wages above the rate of inflation,” Goss said.

Confidence among supply managers is steadily climbing as the March Business Confidence Index increased to 41.0 from 33.4 in February. Still below an optimal strong confidence score, around 68 percent of supply managers expect worsening business conditions over six months, according to the survey.

State reports from Creighton University’s March 2024 survey:

Kansas

The Kansas Business Conditions Index for March dropped to 45.6 from 50.7 in February. Components of the leading economic indicator from the monthly survey of supply managers for March were: new orders at 48.0; production or sales at 50.7; delivery lead time at 52.3; employment at 31.9; and inventories at 45.1. According to the latest month’s U.S. Bureau of Labor Statistics data, there were 2.0 job openings for every unemployed worker in the state. This is the same ratio recorded 12 months earlier.

Missouri

The state’s March Business Conditions Index expanded to 53.8 from 46.6 in February. Components of the overall index from the survey of supply managers for March were: new orders at 48.8; production or sales at 46.2; delivery lead time at 56.3; inventories at 64.9; and employment at 52.5. According to the latest month’s U.S. Bureau of Labor Statistics data, there were 2.0 job openings for every unemployed worker in the state. This is down from 2.5 openings for each unemployed worker recorded 12 months earlier.