NEBRASKA /A.P. NEWS
REGIONAL ECONOMY SLOWING, BUT STILL GROWING (with audio)
By John Axtell
Sep 1, 2010 - 3:58:09 PM

     Creighton University's monthly survey of supply manager in 9 Midwest and Plains states shows a regional economy that's still expanding...but at a slower rate than earlier in the year...and remains in better shape than the country as a whole.

      Economist Ernie Goss says the survey's overall index in August was 55.8...down 5 full points from July, but still above the growth-neutral point of 50. He says the news "isn't good, but could have been worse."

      Goss says the Mid-America region is showing a lot more strength than the national economy, continuing to add jobs at what he calls a "very healthy pace" while national job growth has been nil.

      Despite that, the confidence index...the way the supply managers see conditions 3-to-6 months down the line...dropped for the 4th straight month to 52.4.

     Goss understands why...given all the negative economic news nationally...they would feel that way despite generally positive factors in the regional economy.

    Despite those numbers, more than a third of the supply managers surveyed said the expect another recession next year.

     Goss personally does not expect a so-called "double dip" recession next year, and says most economists don't either.

     The Creighton survey has numbers for each state as well as the 9-state region.

     Nebraska's overall index dropped almost 3-1/2 points from July to 57.5, but stay above growth-neutral for the 12^th straight month.

     The employment index was 57.0, but Goss says many industries are still reluctant to add a lot of jobs. He points to durable goods producers who are increasing output at a brisk rate but adding jobs at a much more subdued pace.

      Goss says rail shipping has been very healthy and truck transportation a bit softer in the state...while food processing firms have yet to experience significant upturns in business activity.