Midwest Economy Declines With Inflationary Pressures

Wednesday, August 1st 2007, 2:41 pm

By: News On 6

OMAHA, Neb. (AP) -- The overall index measuring the economy in a nine-state region of the Midwest that includes Oklahoma falls to its lowest level in six months as inflationary pressures continued to decline.

That's according to a monthly survey of supply managers and business leaders.

The July business conditions index fell to 57.8 from June's 60, the lowest level since January.

The Business Conditions Index ranges between 0 and 100. An index greater than 50 indicates an expanding economy over the next three to six months.

Creighton University economist Ernie Goss oversees the survey and says the survey points toward positive but slowing economic growth in the next few months for the region.

Goss says the index was pushed down by higher oil prices and a housing downturn in cities, but ethanol pushed growth in many other cities.

In Oklahoma, the overall index dropped below growth neutral 50 to hit to 49.5, compared with 54.1 in June and 53.3 in May.