OMAHA, N.E.(KELO)- The regional manufacturing economy is in or close to a recession…with South Dakota as the exception.

Creighton University’s monthly Business Conditions Index shows a lot of pessimism among manufacturing supply managers.

Economist Ernie Goss says slower orders translate into fewer jobs.

In the rest of the nine-state region, supply managers say there’s a lot of uncertainty, and orders are slow.

Higher interest rates have been a drag on the economy.

Investors and consumers are hoping they’ll come down in June.

Goss says he doesn’t see it happening that soon.

That isn’t welcome news for those hoping to see the economy rebound.

Goss says manufacturing purchasing managers are seeing higher prices for raw materials…meaning they’ll try to push those higher costs on to consumers.