Economy is down in Mid-America region

OMAHA, N.E.(KELO)- The region’s economy has turned negative again…with inflation running too hot for interest rate cuts.

That’s the upshot of the monthly Mid-America Business Conditions Index from Creighton University.

Economist Ernie Goss says manufacturing supply managers believe they’re dealing with a recession.

South Dakota’s readings also turned negative.

The state led the region with the highest reading in April, to the second to lowest reading last month.

South Dakota’s manufacturing sector lost jobs at a rate of 1.3-percent…the lowest in the region.

Goss says the entire region experienced weakness in the job sector.

Goss says the inflation that sent rates higher shows no signs of easing.

Goss says so far, the Federal Reserve Board’s action of raising interest rates to slow things down doesn’t appear to be working.

The Index includes a survey of manufacturing supply managers.

Most of those managers say manufacturing is struggling with recession.