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.