An economic survey of supply managers in North Dakota shows the state's economy is expanding.
Dr. Ernie Goss is an economics professor at Creighton University. He compiles the Monthly Business Conditions Index of nine Midwestern states, including North Dakota. North Dakota's index for the month of March was 55.0, which rose from February's rating of 51.6. Any reading above 50 on the index indicates economic growth. Goss says North Dakota's growth currently mirror's the national economy's, which is solid but modest. He says the housing sector had been moving lower with lower interest rates, but that is expected to inspire more people to purchase housing and business investments. He says that points to a solid hold. Goss says right now a lot is hinging on trade talks with China, and industries like agriculture and energy in North Dakota depend a lot on that. Goss says many Midwest states have been dealing with floods, which have negatively impacted their economies.
"25 percent of the purchasing managers reported negative impacts from the flood, and of course that's not necessarily direct impacts but impacts in terms of getting supplies to your company. For example in Nebraska, bridges are out, roads are out, and even the Interstate highways have been closed and that's having some impacts. But all in all we may see price increases, particularly for food, because of the tariffs but also because of this flooding in terms of livestock, and grain."
Goss says recent increases in oil prices are good for North Dakota. He says the FED has promised no interest rate hikes in 2019, but those could be on the table again if oil continues to recover. Goss says information to come out in the next employment report this week will be telling and could signal the true strength of the overall economy.