A monthly survey of business in nine Midwestern states suggests that the outlook for economic growth in the region remained strong in June, but that tariffs and rising energy prices could eventually slow the Midwest economy.
The Creighton University Mid-America Business Conditions Index, an economic indicator for the Midwest, was 61.8 for June. That represents a drop from May’s 67.3, but it still indicates positive growth.
The index, which provides a rough estimate of future economic strength based on things like employment rate, wholesale prices and market confidence, ranges between 0 and 100, with 50 representing growth neutral.
This is the 19th straight month the index has remained above 50, and it suggests healthy growth for the next four to six months, the release said.
The report also stated that recent tariffs between the U.S. and trading partners contributed to elevated inflationary pressures, which will likely lead to another Federal Reserve rate hike before the end of September.
The state scored 62.6 for June, down from its May score of 69.9.
“Over the past 12 months, the Missouri economy added 2,000 durable goods manufacturing jobs for a growth of 1.3 percent, but lost 700 nondurable manufacturing jobs for a growth of minus 0.7 percent,” Ernie Goss, director of Creighton’s Economic Forecasting Group, said in a press release.
Goss noted that Missouri ranked last among the nine states surveyed for rate of overall manufacturing growth over the last 12 months.