By O. Kay Henderson (Radio Iowa)

A Creighton University survey of supply managers in manufacturing plants in the middle of the country shows business conditions improved in the region last month and remain solid in Iowa.

Creighton University Economics Professor Ernie Goss conducts the survey. “It’s consistent with solid overall regional economic growth as it spills over into the broader economy,” Goss said, “but still not strong enough to get excited about.”

Iowa’s “Business Conditions Index” for July slipped a bit from June, but was still showing growth. Goss indicated inflation and the war in Iran are drags on the economy. “Those two compound and what do you get? Stagflation. Now, we’re not to stagflation yet,” Goss said. “Delivery speed is still slowing and that’s going to push up prices as well.”

The latest federal data shows Iowa’s manufacturing sector shed 4600 jobs in the past 12 months. Goss said that’s 2.1% of Iowa’s manufacturing base and fits in the national trend. “When you look at manufacturing, US manufacturing jobs still down 37,000 over this time last year,” Goss said.

Creighton University’s Business Conditions Index found an uptick in economic conditions in just three of the nine states that are part of the survey. Overall, the supply managers indicated they were optimistic about economic prospects through the end of the year.