Economic Conditions Dip in Lastest Mid-America Index

August 1, 2019 - 2:39pm

An index that measures economic conditions in Nebraska and eight other Midwestern states has dropped to its lowest level in 42 months.


The Mid-America index, dropped to 52 on the 100-point scale in July – which means the economy’s still growing, but growth is slowing down. Nebraska's index dropped from 55.9 in June to 52.9 in July.

Ernie Goss, index creator and Creighton economics professor, said it’s not a good report and the overall index is representative of Nebraska's index. Goss said trade is down and he expects the Federal Reserve to cut interest rates by another quarter-point in September.

“The U.S. has some of the highest interest rates on the face of the globe," Goss said. "Particularly, in terms of the developed economies. We need to move our interest rates lower to get more in line with global interest rates.”

The Fed cut rates Wednesday, the first time in a decade. The index shows more than half of supply managers in the nine states indicate tariffs make it more difficult to buy, but Goss said there’s still wide support for tariffs from supply mangers, with one telling him “short-term pain is worth long-term gain.”

 

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