The Business Conditions Index for the Mid-America region dipped in August to a still healthy level, but the leading economic indicator for Kansas from a survey of supply managers increased for the first time since May.
The Business Conditions Index surveys supply managers in a nine-state region. Surveys over the past several months indicate the economic expansion will continue to weaken, with a rising potential for a double-dip recession, according to Ernie Goss, the Creighton University economics professor who conducts the survey.
Overall, the index declined in August to 55.8 from July's 60.8 and June's 62.5. An index of 50.0 is considered growth neutral for the leading economic indicator. This was the ninth straight month that the index has risen above growth neutral.
In Kansas, the August Business Conditions Index climbed to 53.4 from 49.3 in July and 51.1 in June. Components of the overall index for August were new orders at 59.5, production, or sales, at 55.8, delivery lead time at 54.5, employment at 51.6, and inventories at 45.7.
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"Food producers in the Kansas report experienced healthy business conditions for the month. On the other hand, durable goods manufacturers and telecommunications firms have experienced pullbacks in growth prospects," Goss said in a statement.