By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said according to his monthly survey of Midwest supply managers, the economy is weaker than it has been in a couple of years.
"This is the worst reading we've had since the beginning of the pandemic, that would be in May of 2020," Goss said. "The overall index dropped below growth-neutral. Supply managers are not very optimistic about the future, either. Things are just not what we'd like to see in our report."
The issues that are ongoing after the pandemic could be exacerbated by the national railroad labor dispute.
"Weaknesses are finding and hiring qualified workers," Goss said. "Sixty-five percent of the supply managers said they had few applicants for the jobs that they have posted. In other words, nobody's showing up. This is constraining growth. Of course, we are staring down at a potential rail strike. We'll have to see what happens in Congress, there. That would sort of seal the deal."
Though Congress is pushing through a deal to try to keep the railroads at work, Goss would rather have seen it handled differently.
"There are a lot of workers directly employed by rail companies," Goss said. "Also, there are indirect impacts to agriculture, to ethanol. The list is long of industries that would be negatively affected. I'm on the side of thinking this should be settled by the parties themselves, but it doesn't appear that's going to happen."
Supply managers are overwhelmingly pessimistic about the economy in the next six months in the Midwest, regardless of whether or not the rail strike is resolved.
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