The monthly Creighton University Business Conditions Index shows the region ended 2021 on a healthy note.
The Mid-America regional report shows the nine state area remained above growth neutral for 19 of 20 months. December’s index rose to a strong 64.6 from November’s 60.2. Numbers above 50.0 show economic growth.
Creighton University Economist Ernie Goss says, “Creighton’s monthly survey results indicate the region is adding manufacturing activity at a positive pace, and that regional growth will remain solid. In terms of supply chain disruptions and bottlenecks for the first half of 2022, approximately one-third of supply managers expect delays to worsen with only one in six anticipating improvements.”
The survey showed supply chain delays worsened in December. Approximately one-third of supply managers expect supply chain disruptions to get worse for the first six months of 2022. Approximately half of supply managers expect the Omicron strain of COVID-19 to slow deliveries.
The regional employment index remained above growth neutral for December but dropped to 59.3 in December from 61.1 in November. Goss says, “Despite healthy growth over the past year, compared to its pre-pandemic level, U.S. Bureau of Labor Statistics employment data indicate that the region has lost 25,000 manufacturing jobs, or 1.8%.”
The wholesale inflation gauge for the month declined to 82.7 from December’s 92.9. “Creighton’s monthly survey is tracking the highest and most consistent inflationary pressures in more than a quarter of a century of conducting the survey,” said Goss.
Nebraska’s overall index for December fell to 64.1 compared to 67.0 in November. Since the start of the pandemic, Nebraska’s durable goods and non-durable goods manufacturers have experienced slow growth with total manufacturing jobs above pre-pandemic levels. The hourly wage advanced by 10.2% during the same period of time.