North Dakota’s economy has experienced a slowdown for the fourth consecutive month. Dr. Ernie Goss, an economics professor at Creighton University, conducts a monthly survey of manufacturing supply managers in the Mid-America Region. According to Goss, North Dakota’s reading on the business conditions index for June was 45.5, which is an improvement from May’s 40.2, but still below 50, indicating a contracting economy. Goss attributes this slowdown to the energy and agriculture industries in North Dakota, both of which are slowing down. Additionally, exports have decreased by 16% compared to the same time last year.
Despite these challenges, Goss highlights some positive aspects of the economic outlook. He mentions that the demand for food and energy will continue, and the United States is highly productive in these areas. While he acknowledges the tough spell that North Dakota is currently facing, he remains optimistic about the state’s long-term prospects. Goss notes that the USDA has projected a decrease in farm income for 2024, which is affecting the manufacturing sector, particularly agricultural equipment manufacturing.
Furthermore, Goss mentions that inflationary pressures have also decreased, and he predicts that the Federal Reserve will lower interest rates at their next meeting in September. This could have a positive impact on the economy and help stimulate growth in North Dakota and the Mid-America Region as a whole. Despite the current challenges, Goss believes that the state will ultimately recover and thrive in the long run.