Mid-America Wholesale Prices Soar to Another Record High

(KFOR NEWS July 1, 2021) Since declining to a record low in April of last year, the Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, moved above growth neutral for 13 of the last 14 months.

The Business Conditions Index, which uses the identical methodology as the national ISM, ranges between 0 and 100, climbed to a very strong 73.5 from May’s 72.3. However, as in previous months, manufacturing supply managers report that labor shortages and supply bottlenecks continue to restrain growth.

Nine of 10 supply managers reported increases in supply bottlenecks, or delays, for June.

“Creighton’s monthly survey results indicate that the region is adding manufacturing business activity at a very healthy pace, and that growth will remain strong with the overall regional economy returning to pre-pandemic levels in the first quarter of 2022,” said Ernie Goss, PhD, director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business.

June Survey Highlights:

Creighton’s regional Business Conditions Index climbed into a range indicating very strong growth for next three to six months.
The wholesale inflation gauge surged to a record high.
On average, supply managers expect prices to advance by another 8.6%, annualized, for the rest of 2021.
Nine of 10 supply managers reported that supply bottlenecks slowed deliveries to their firms.
The top 2021 economic challenges named by supply managers were supply bottlenecks, price increases and worker shortages.