(Omaha, Neb.)– The Creighton University Mid-America Business Conditions Index has declined for four out of the past five months. Creighton University economics professor Ernie Goss expects positive growth ahead in the nine mid-America states but says the economy is slowing down, overall…
“The confidence index dropped to its lowest level since COVID-19 in March 2020. The economic confidence looking forward is much weaker, so we’re going to see the results of that moving forward.”
Goss says the greatest challenges supply managers will face over the next 12 months include supply chain bottlenecks, rising input prices, the coronavirus, and more importantly, hiring challenges…
“What we’re seeing is the ability to find and hire workers is significantly impaired due to a shortage of workers. The region is still down 3.4% (jobs) from COVID levels, and the U.S. economy is down 3.5% from pre-COVID levels. We still have a way to go getting back those jobs.”
Looking ahead to the holiday buying season, Goss says both supply managers and consumers will be impacted by a shortage of goods…
“We’re going to see some empty shelves and higher prices for consumers this holiday buying season. The word is, buy early and get it fast, because prices are rising, and shortages are continuing. They are not likely going to get much better throughout the holiday buying season.”
Inflation is expected to remain strong for the rest of 2021. Goss says he has never seen inflationary pressures like this at the wholesale level…
“The Federal Reserve, because of these inflationary pressures, will take action to back some of their stimulus in the months ahead.”
As slower economic growth continues, long-term interest rates are expected to inch higher in the fourth quarter, however, experts say short-term rates are expected to remain at record lows.
