Report: Tariffs limiting manufacturing growth

The regional manufacturing economy remained limited last month amid ongoing job losses, according to the Creighton University Mid-America Business Conditions Index..The index fell to 49.8 from 50.5 in August, marking the second time in three months it has dropped under the threshold of 50, which separates growth from contraction. Employment remained soft, with the regional manufacturing sector shedding jobs for the sixth straight month. Confidence also remained limited, with the related index falling to 38.2 from 47.4 in August. “Concerns regarding tariffs, inflation and slowing business activity pushed supply managers’ expectations lower,” said Ernie Goss, chair in regional economics at Creighton University. “Only one in four supply managers expect rising economic conditions for their firm over the next six months.”The regional inventory index dropped to 48.6 from 49.3 as inventory growth slowed from earlier this year, Goss said. The new export orders index increased to 43.4 from 39.5 in August as supply managers pulled back on international purchases following record imports for the first two months of 2025. September’s import index fell to 34.8 from 35.9 in August. Tariffs remain a pressing concern, according to the report. While 60 percent of supply managers said higher tariffs had little impact on purchasing, both imports and exports weakened. Regional exports of manufactured goods fell 5.5 percent or $3.1 billion in the first seven months of this year compared to a year earlier, according to federal trade data.September’s employment index came in at 44.9, down from 45.6 in August and its sixth straight month of being under 50. The regional manufacturing economy has shed 3,800 jobs over the past 12 months, according to the U.S. Bureau of Labor Statistics. “The regional manufacturing economy continues to move sideways to down with elevated wholesale inflation,” Goss said.September’s price gauge index slightly dropped, to 64.1 from 64.9 in August. Goss expects the Federal Open Market Committee will cut interest rates at its next meeting late this month. “The regional inflation yardstick has moved into a range indicating that inflationary pressures are elevated at the wholesale level,” he said. The survey covers nine states: Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.