Friday, September 01, 2006

Goldilocks Economy for Mid-America

August survey results at a glance:

*Business Conditions Index down but pointing to soft landing

*Job growth solid for August but down from July

*Confidence weakens and continues to fall

*New export orders decline to 3 year low

Growth in the Mid-America region shows signs of cooling as inflationary pressures begin to diminish, according to a monthly survey of supply managers and business leaders in a nine-state region.

The overall business conditions index slumped to its lowest level of the year, but stood at a solid 56.3, down from July’s 60.2, but well above growth neutral 50.0. Over the past several months, this leading economic indicator has been pointing to slower, but positive growth for the rest of 2006 as higher short term interest rates and energy prices restrain growth to a level consistent with Federal Reserve growth targets.

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