The July Business Conditions Index dipped more than two points from the month before. Creighton University Economist Ernie Goss reports July’s index came in at 50.6 compared to June’s 53.0.
Goss says, “We’re talking about an economy, the nine state region we are surveying, are more tied to agriculture and more tied to energy. Those two sectors are not doing well. We are seeing that in industries and businesses we are surveying.”
The job gauge advanced to a weak 50.0 from June’s 49.1. “Industries and areas dependent on agriculture and energy are experiencing cuts. For example, metal producers and agricultural equipment manufacturers are facing job losses,” said Goss.
Supply managers were also asked about the anticipated Federal Reserve rate hike in September. Goss says 26% expect negative impacts from the rate hike. He says 5% anticipate positive effects and the remaining 69% expect to feel no affect. However Goss reports one supply manager noted an interest rate hike would slow car sales and production a bit.