The Iowa economy showed modest improvement in June, according to a report today from Creighton University.

The Mid-America Business Conditions Index, which evaluates economic conditions in a nine-state region, scored Iowa at a “very healthy” 62.6, up from 62.5 in May. Components of the overall index from a survey of supply managers were new orders at 63.3, production or sales at 69.9, delivery lead time at 64.4, employment at 59.3 and inventories at 56.2.

“Over the past 12 months, the Iowa economy has added 7,200 durable goods manufacturing jobs for a growth of 5.8 percent, and 2,400 nondurable manufacturing jobs for a growth of 2.6 percent. Iowa ranked first among the nine states in the region in terms of the rate of overall manufacturing growth over the past 12 months,” Ernie Goss, director of Creighton’s Economic Forecasting Group and the Jack A. MacAllister chair in Regional Economics in the Heider College of Business, said in a release.

Overall, the regional index, which ranges between zero and 100, declined to 61.8 from May’s 67.3. This is the 19th straight month the index has remained above growth-neutral 50. “The regional economy continues to expand at a very healthy pace with manufacturing growth of approximately 2.5 percent over the past 12 months compared to a lower 2.1 percent for the U.S.,” Goss said. “However, I expect expanding tariffs, trade restrictions and rising oil prices to slow growth and push inflation into a range leading to more aggressive Federal Reserve rate hikes.” 

A separate index compiled by the Iowa Department of Revenue found that the economy was flat, but still in growth territory. Read more