Midwest Economies Showing Gradual Recovery

Iowa’s economy is gradually recovering from the deep drop caused by the pandemic, according to the monthly Creighton University survey of supply managers and business leaders in Iowa — and in eight other states. Creighton economist Ernie Goss says the Midwest region overall is inching back toward prosperity, though he says it’ll be a long climb. The overall index is based on a zero-to-100 scale, with 50 being growth neutral.

Iowa’s overall index rose above growth neutral during July, reaching 50.9. That’s up from 47.1 in June. Since the onset of COVID-19, Goss says Iowa has lost 108-thousand jobs, or almost seven-percent of its total employment. The Creighton surveys point to continued job losses in the months ahead, he says.

While a few businesses reported a financial upturn during recent months, the vast majority were badly hurt by COVID-19 and for some, the troubles have remained or worsened.

Goss says 70-percent of manufacturers surveyed reported shipping problems during July, with both incoming and outgoing products, compared to 51-percent with shipping troubles in April. Also, he says 48-percent of those surveyed had worker absences during July, compared to 61-percent in April.