Creighton report finds manufacturing sector declined in May

A survey of manufacturing supply-chain managers in the Midwest found that economic growth slowed in the month of May.

Creighton economics professor Ernie Goss, who leads the Mid-America Business Conditions Index, said high inflation and fewer exports are resulting in lower growth in the manufacturing industry.

Goss said labor force participation rates are low, as baby boomers are retiring without replacements.

“We have a worker problem, in addition to having the global economy not being as strong as we'd like to see it,” he said. “The strong dollar is making us less competitively priced abroad.”

Goss said high-priced American exports are causing some manufacturers, such as John Deere, to announce layoffs and others to move to Mexico.

“It's not a recession yet, but it's certainly moving that direction,” Goss said.

Goss anticipates inflation to continue to fall but remain above the Federal Reserve’s target of 2%.