Iowa’s manufacturing sector faced a tough month in July, according to the latest Mid-America Business Conditions Index from Creighton University. The state’s index fell to 43.7, well below the 50.0 growth-neutral mark, signaling contraction in the industry.
Key indicators showed weakness across the board. Employment dropped sharply, with a reading of 33.2, contributing to a four-month streak of regional job losses. Meanwhile, Iowa’s exports of manufactured goods fell 10.3% compared to the first five months of 2024, totaling $6.2 billion.
The index also revealed rising wholesale inflation, with regional supply managers expecting input costs to climb nearly 8% in the coming year due to tariffs and trade uncertainty.
Despite concerns about global supply chains, only a small fraction of manufacturers reported switching to domestic suppliers. Business confidence also dropped significantly, reflecting growing unease about the economic outlook.
The survey covers nine Midwestern states and is released monthly.
