Midwest, Nebraska Economy Drop Following Strong October

The leading economic indicators over the last 18 months. (Courtesy Creighton University)
December 2, 2019 - 2:12pm

The Midwest’s economy dropped in November to lowest level in three years in one economic index.


The Mid-America Index, which covers nine states in the Midwest, including Nebraska, dropped to 48.6 from October’s 52.6. Any value below 50 indicates a decreased rate of growth.

Ernie Goss, Creighton University economics professor and index creator, said the drop can be attributed to a slowing of the global economy and continued trade negotiations.

“Nebraska is getting hit doubly in the sense of agriculture and manufacturing," Goss said. "At this point, we don’t see much end in sight right now. But that could turn around if we see some good trade agreements, and the Chinese come to the table, and the U.S. comes to the table with, instead of coals, we have some flowers.

60% of supply managers surveyed for the Mid-America Index support continued and increased tariffs for Chinese products. Goss suspects the Federal Reserve won't cut interest rates again this year, which would be the fourth time in 2019.

 

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