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Thomson Financial News
Mid-America states to see deeper recession-survey
12.01.08, 10:55 AM EST
CHICAGO, Dec 1 (Reuters) - An index of business conditions in nine U.S. Midwest and South-Central states hit a record low in November, indicating a more severe recession was in store for the region, according to an economic survey released on Monday.
Creighton University's Business Conditions Index fell to 37.8 in November from October's previous record low 39.9. A reading of 50.0 is considered growth neutral over the next three to six months.
'These readings are much lower than those recorded before and during the 2001 recession. The regional economy is now in a recession and I expect it to rival the recession of 1981-82 in terms of joblessness and job losses,' Creighton University Economics Professor Ernie Goss said in a statement.
The survey's employment index dropped to 39.0 in November, the lowest reading since the survey began in 1994, from 47.4 in October.
'While both durable and nondurable manufacturing job growth was negative, the heavy or durable goods sector experienced much weaker job conditions for November,' Goss said. 'I expect regional job losses to mount in the months ahead with rapidly rising unemployment rates for most states.'
The prices-paid index, which tracks the cost of raw materials and supplies, continued to fall, sinking to 49.6 in November from 61.6 in October and 84.0 in October, reflecting the weakening economy and a stronger U.S. dollar, according to the survey.
Supply managers and business leaders were surveyed in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
Thomson Financial News
Mid-America states to see deeper recession-survey
12.01.08, 10:55 AM EST
CHICAGO, Dec 1 (Reuters) - An index of business conditions in nine U.S. Midwest and South-Central states hit a record low in November, indicating a more severe recession was in store for the region, according to an economic survey released on Monday.
Creighton University's Business Conditions Index fell to 37.8 in November from October's previous record low 39.9. A reading of 50.0 is considered growth neutral over the next three to six months.
'These readings are much lower than those recorded before and during the 2001 recession. The regional economy is now in a recession and I expect it to rival the recession of 1981-82 in terms of joblessness and job losses,' Creighton University Economics Professor Ernie Goss said in a statement.
The survey's employment index dropped to 39.0 in November, the lowest reading since the survey began in 1994, from 47.4 in October.
'While both durable and nondurable manufacturing job growth was negative, the heavy or durable goods sector experienced much weaker job conditions for November,' Goss said. 'I expect regional job losses to mount in the months ahead with rapidly rising unemployment rates for most states.'
The prices-paid index, which tracks the cost of raw materials and supplies, continued to fall, sinking to 49.6 in November from 61.6 in October and 84.0 in October, reflecting the weakening economy and a stronger U.S. dollar, according to the survey.
Supply managers and business leaders were surveyed in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.