Manufacturers across Minnesota and the Midwest saw increased sales and hiring in January, even as they continued to struggle with the high U.S. dollar and sagging export orders.
Factory leaders responding to the widely watched Creighton University Mid-America Business Conditions Index survey also indicated a business-confidence level not seen in six years.
The nine-state index and the Minnesota index each jumped to 54.7 in January. The index was up from 53.1 in December for the nine states (when it returned to growth mode) and up from 52.3 for Minnesota. Any score higher than 50 indicates growth.
"This is the third consecutive month the index has increased and points to an improving regional manufacturing economy," said Ernie Goss, director of Creighton's Economic Forecasting Group. "I expect this to generate even healthier growth for both manufacturing and nonmanufacturing for the first half of 2017."
The confidence level jumped six points to 69.5 in January.
Minnesota manufacturers noted increases in new orders, sales, delivery lead times and factory employment, which had been a sore spot in past months.
Goss largely credited Minnesota's improvement to makers of products with short shelf lives.
"Minnesota durable goods manufacturers, including metal producers and agriculture equipment manufacturers, continue to shed jobs," he said." On the other hand, nondurable-goods producers including food processors, are adding jobs at a solid pace."
