State’s business conditions index falls in March

The state’s Business Conditions Index fell to 61.6 from 64.7 in February and 63.7 in January. It is the first time the index has declined since October.

Components from Missouri’s overall index in March were: new orders at 64.3, production at 66.7, delivery lead time at 48.9, inventories at 53.6, and employment at 64.8.

Indexes range from 0 to 100, and an index number higher than 50 indicates an expanding economy, according to a Missouri Department of Economic Development news release.

“While the state’s economy and manufacturing sector continue to grow, firms with ties to vehicle manufacturing have yet to halt their downturn trend,” said Creighton economics professor Ernie Goss in an April 2 news release. “Thus, even as Missouri’s economy advances, I expect its unemployment rate to remain as much as a half percentage point above that of the nation.”

The report identifies computer software and systems design as Missouri’s biggest gaining industry, and vehicle and parts manufacturing as its biggest waning industry.

The Economic Forecasting Group’s index comprises information for a nine-state region that includes Missouri. Overall, the region’s index rose in March for the third straight month to 58.9, its highest level since July of last year.

The group conducts monthly surveys using the same methodology as The Institute for Supply Management. Creighton University is in Omaha, Neb.[[In-content Ad]]