TOPEKA, Kan.- Kansas business conditions dropped to 45.6 in March, down from 50.7 in February according to the monthly Business Conditions Index compiled by Creighton University.
The index is the average of individual scores measuring new orders, production or sales, delivery lead time, employment, and inventories.
Employment in Kansas measured at 31.9. According to the latest month’s U.S. Bureau of Labor Statistics data, there were two job openings for every unemployed worker in the state. This is the same ratio recorded 12 months earlier.
Hiring in the nine-state MidAmerica Region survey came in at 40.9, said Ernie Goss, professor of economic at Creighton University.
“Hiring was not good for the month of March,” Goss said. “The overall index was … down significantly from February’s weak 42.9. I get concerned when these indices get below 42, so this is a warning signal.”
Approximately, one in four supply managers in the nine-state region reported concerns about future inflation.
“What’s adding to the concern is the Baltimore port disaster. That is going to mean more supply chain disruptions moving forward than what we’ve seen in the past,” Goss said. “What’s going on in terms of rebuilding in Baltimore; the Red Sea battle with Hamas and Israel spilling into the supply chain; and we’ve got the Ukraine/Russia war, which is a real concern.”
The overall index has fallen below growth neutral for three of the past four months.
The MidAmerica Region includes Kansas, Arkansas, Iowa, Minnesota, Nebraska, North Dakota, Oklahoma, South Dakota, and Missouri.
Other Kansas Indicators
New orders: 48.0
Production or sales: 50.7
Delivery lead time: 52.3
Inventories: 45.1
