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Despite a shortage of workers and supply chain bottlenecks, the Midwest’s economy is strong, according to a new Creighton University business index.
The Mid America Index climbed to 65 in October on a scale of 0-100. A number above 50 means an economy with positive growth. In September, the index clocked a value of 62. For the most part, the numbers have trended in upward in the past few months. The index largely relies on a survey manufacturers every month, and that sector has seen strong growth and a climb in wages.
What’s holding back the area from more economic growth, according to Ernie Goss, the Creighton economics professor who oversees the index, is partially the shortage of workers which created some of the supply chain problems in ports across the country and domestic shipping – like trucking.
“We're going to have to see this play out," Goss said. "It doesn't look like this is going to end anytime soon in the region, in Nebraska or for that matter the U.S.”
Retailers and consumers across the country have already noticed depleted shelves and those may only get worse approaching the holiday season. Because Nebraska is so dependent on agriculture, a sector that relies on exports and imports, Goss said the supply chain problems could put a drag on the local economy. In all, though, the agriculture economy keeps growing, he said.
“One of the best parts of our survey – and what's going to be important for Nebraska – is the fact that agriculture and agricultural prices and farm income continue to grow.”
With that in mind, Goss said he’ll be keeping an eye on the strikes at Kellogg's plant in Omaha and John Deere locations across the Midwest.