By Frederick Baehner, Publisher
September 3, 2024 - Economic activity in the manufacturing sector contracted in August for the fifth consecutive month, according to the nation's supply executives in the latest Manufacturing ISM Report On Business.
Its New Export Orders Index reading of 48.6 percent fell slightly from the July reading of 49.0 percent registered in July.
In the US Heartland comprising nine Midwestern states, the manufacturing sector fell again during the month of August and the overall business conditions Index sank as well.
The Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, also declined, said Ernie Goss PhD, director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business.
As a result of a cooling economy and waning inflationary pressures, Prof Goss expects at least two rate cuts by the Federal Reserve for the remainder of 2024.
“The rising value of the US dollar, making our goods less competitively priced abroad, is hurting Midwestern exports. As a result, export numbers worsened for the month of August with new export orders slipping to a weaker 50.0 from July’s 51.5. The slowing regional economy pulled the import reading down to 45.1 from 47.6 in July.” said Prof Goss.
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