The Mid-America Business Conditions Index for the nine state region, including Nebraska, in August rose to a healthy level of 57.5 compared to July’s 56.1.
Creighton University Economist Ernie Goss says analysts are watching closely how Hurricane Harvey will impact the economy. He says the August survey does not take that into account. He expects the price at the pump will jump significantly.
Goss says, “Hurricane Harvey is yet to effect the economy. We will see it in oil prices though later on this month. That would be the month of September. I expect gasoline prices to move above $3 a gallon so that is a fairly significant impact. We’ll see it in inflation numbers later on as well but of course that is a temporary phenomenon.”
The survey also shows the employment gauge remained in a healthy range and the inflation gauge moved into a range indicating modest pressure in the wholesale level. The Business Conditions Index for Nebraska fell slightly to 57.9 from 56.0 in July. The state is adding manufacturing jobs at an annual pace of almost 1.5 percent and growing nonmanufacturing employment at a rate of 1.2 percent.