Ag Boosts Economy In Midwest, Plains

According to a new survey, the economy is gaining strength in nine Midwest and Plains states because global growth and continued low interest rates have provided a boost to agriculture and energy businesses, the Associated Press reports.

“The regional economy is beginning the year on a very healthy note,” Creighton University economist Ernie Goss said. “Over the past year, farm commodity prices have risen by 18 percent. This rapid price growth is showing up in farmers’ income and in industries tied to agriculture.”

The overall Mid-America business conditions index rose for the fourth straight month, to 58.9 in January. That compares with 57.5 in December, 55.9 in November and 52.3 in October. January was the 14th consecutive month that the index came in above growth neutral. (Any score above 50 suggests growth in that index over the next three to six months.)

January’s overall score of 58.9 suggests economic growth in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. The overall index is a mathematical average of indices for new orders, production or sales, employment, inventories and delivery lead time. The prices-paid index, which tracks cost inflation, remained high at 84.2 in January, up from December’s 81.1.

Inventory index fell to 55.8 in January from 64.4 in December. The export index rose to 54.7 in January from December’s 54.1 and November’s 50.8. Goss said the weaker dollar is making U.S. goods cheaper abroad, which helps exports. The import index also rose to 55.5 in January from December’s 50. ◆