Midwest economic index points to regional growth but unemployment will likely linger awhile

Omaha, Nebraska (AFP) - economy in nine Midwest and the state continue to strengthen the plains, but a new report released on Tuesday suggests that companies are reluctant to hire new workers, so unemployment is likely to remain high.

The total mid-America Index trade conditions for the sixth straight month in May, but uncertainty remains because of the economic financial crisis in Europe and fears that exports would suffer if the dollar continues to strengthen.

"There is economic uncertainty just too much at the moment for companies to employ more force, it will take many months by most countries in the region to restore the jobs lost since the recession," professor of economics at Creighton University Ernie Goss said.

The report, which is based on a survey of supply managers and business leaders, and uses a set of indexes, ranging from zero to 100, and any degree above 50 indicates economic growth in the next 3-6 months. Scores less than 50 indicates the economy contracting.

The index rose to 64.2 in May from 61.7 in April, already strong, suggesting good things for the economy in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

Said Goss, who oversees the study, said it would take several months for most countries in the region to restore the jobs lost during the Great Depression, so will unemployment does not improve quickly, although the employment index reached its highest level in nearly four years. The employment index rose to 60.1 in May from 58.4 in April and March of 57.9.

"The financial crisis in Europe a threat to the ongoing economic expansion, which increased the value of the dollar, making U.S. goods manufactured and agricultural products less competitive abroad," said Goss.

But exports so far in the high value of the dollar has not hurt. The index for export to 59 May in 57 of April.

Import index also improved in May to 63.2 from 59.8 in April.

Goss said the survey showed that managers of companies in the region remain optimistic about the next six months. Confidence index fell to 69 May May from 72.9 in April, but still much higher than the degree of growth-neutral 50.

Remained the prices paid index, which tracks the cost of raw materials and supplies, high 80.4 in May, but dropped slightly from 81.2 in April.

For the fourth straight month, increasing the supply managers of stock levels. Survey stock index rose to 54.6 in May from 53.2 in April.