Manufacturing conditions in Minnesota and eight other Midwestern states showed the fifth consecutive month of gains — with solid reports on new orders and employment, according to a widely watched monthly economic survey.
The Mid-America Business Conditions Index produced by Creighton University increased to 61.4 from 60.1 in March. Any index above 50 signals growth.
In Minnesota, the index slid slightly to 61.2, down from 61.8 in March. Manufacturers generally reported solid results for new orders, sales, delivery lead time and employment. Recent earnings reports from 3M, Graco and Polaris Industries have shown signs that business conditions are improving. All reported higher-than-expected sales or profit results for the first quarter of the year.
Ernie Goss, director of Creighton's Economic Forecasting Group, said he expects more good news in months to come.
"Survey results over the past several months indicate that Minnesota job and economic growth will exceed the national average through the third quarter of this year," he said.
Across the nine-state region, factory leaders and supply managers reported improved sales, hiring and delivery speeds during April even as they wrestled with lower exports, higher inventory levels and lower confidence levels. The region also includes Iowa, North Dakota, South Dakota, Nebraska, Missouri, Kansas, Oklahoma and Arkansas.
Economists were particularly pleased to see employment gains across the region as manufacturers have complained for months that they would like to grow faster, but can't find enough new skilled workers to hire.
April's employment index nudged slightly higher to 62.9 from 62.6 in March, making it "the highest employment gauge recorded since May of 2006," Goss said. "Even with the recent boost in employment growth, total regional employment growth, year over year, is now only 0.9 percent, or approximately half that of the nation."
