The Mid-America Business Conditions Index for March jumped to a strong 71.3 from February’s healthy 64.0.
Creighton University Economist Dr. Ernie Goss says, “Creighton’s monthly survey results indicate the region continues to add manufacturing activity at a very healthy pace but with modest job additions. Supply chain disruptions and labor shortages have pushed commodity prices briskly higher.”
The employment index for March came in at 60.5 compared to 56.6 in February. Among states in the mid-west region, only Arkansas has returned to pre-pandemic non-farm employment levels. The survey asked supply managers to project wage gains for 2022. Wage growth will be less to 3%. Goss says, “Given the shortage or works, this restrained increase is surprising.”
Business supply managers face a number of issues in the weeks and months ahead. they say it is hard to distinguish between increased demand and panic buying. Supply chain disruptions pushed commodity prices higher in the region. Concerns about the impacts of the Russia-Ukraine war, higher interest rates, soaring inflation, and supply chain disruptions pushed business confidence well below growth neutral.
Nebraska’s overall index for March increased to 69.2 compared to February’s 63.2. Over the past 12 months, BLS reported that Nebraska’s average hourly manufacturing wage expanded by 10.4%, and it tops the nine states in the region. Metal manufacturers lead the way in terms of manufacturing job growth in the state.