(Radio Iowa) – The Mid-America Business Index for August shows Iowa’s manufacturing sector is being hit by a sales slowdown. Creighton University economist Ernie Goss checks in each month with manufacturing supply managers in nine states, including Iowa.

“What we’re seeing in our survey for Iowa, for the region and for the nation is the manufacturing sector is bumping along,” Goss told Radio Iowa. “I won’t call it in a recession…(but) it’s certainly a slowdown and we’re seeing the pinch in the streets as we’re seeing pull backs in employment.”

The state’s overall Business Conditions rating for August marks a fourth month of decline from what Goss calls “growth neutral.” New orders and production were down among Iowa manufacturers in the August report, with an overall decline in hiring. “The national number came out this morning and also showing that employment in the manufactuing sector remains weak and declining and job losses there,” Goss said. “And certainly again, in terms of Iowa, you can trace that back to the agricultural equipment manufacturing, but also to those related industries.”

Ernie Goss

Goss cited a pull-back in facilities that produce fabricated metal. According to the latest data from the U.S. International Trade Administration, exports from Iowa’s manufacturing sector through August are down nearly 6% when compared to the first eight months of last year. “At least going forward, that’s going to unfortunately continue,” Goss said. “…And of course it’s slowing down the Iowa economy and the regional economy.”

Goss has a separate survey that focuses exclusively on what’s happening the agricultural sector. “Those who sell directly to the farmers are having a real downturns in overall sales as the farmers cut back on their purchases,” Goss said, “and we’re seeing some of those impacts.”

In a news release issued this morning by Creighton, Goss said the supply managers he surveys for the monthly Mid-America Business Index are “pessimistic” and 35% of them say a recession is “a real threat.”