(Radio Iowa) – A survey finds Iowa’s economy further slumped during November following a “weak” showing in October, with little optimism for improvement. Creighton University economist Ernie Goss says the monthly survey of business leaders and supply managers in Iowa and eight other Midwestern states found the state and regional economies sputtering. Goss says they were asked about the biggest challenges to business and manufacturing in the months ahead.
“Supply chain disruptions, by far, was the largest challenge that the manufacturers see going forward with 38.7% indicating that that was likely to be the greatest threat to their business,” Goss says. “Higher inflation was number two at 27.8%.” Other predicted challenges on the list include labor shortages and cyber threats. Goss says the leaders of many Midwestern manufacturing businesses are concerned about next month’s potential longshoremen’s strike for the 17 ports on the East and Gulf coasts.
“And of course, with President Trump’s call for tariffs, that scares manufacturers and scares agricultural interests, and that’s a big concern,” Goss says. “That’s what this part of the country depends upon, and that’s a big issue going forward.” The report grades the economy on a zero-to-100 scale with a score of 50 being “growth neutral.” For the sixth time this year, the overall score fell below growth neutral during November, and for a second straight month, the wholesale price inflation gauge rose. Goss says hiring was also stagnant during the month.
“When you look at the overall reading for manufacturing this year alone, down about 90,000 jobs,” Goss says. “That’s about seven-tenths of 1%. The U.S. economy has lost jobs, manufacturing jobs, six of the last 10 months. The region’s only down slightly, 2,000 jobs or about two-tenths of 1% but the region’s lost jobs in four of the last five months.” The survey finds the Midwest’s employment index slumped below growth neutral for an 11th straight month during November. According to the latest U.S. International Trade Administration data, Goss says Iowa’s manufacturing sector experienced a $1.1 billion drop in 2024 year-to-date exports, compared to the same period in 2023, for an 8.5% decline.