Economic slip may be double dip

Better to stop at oneOne sign the Midwest’s economy was on its way to recovery has slipped back into negative territory.

Last month’s survey of purchasing managers at manufacturing companies drove the Mid-America Business Conditions Index to 47.5, below October and September readings that were both above 50.

At 50, the index is neutral about the economy’s trend but readings below 50 indicate economic contraction.

“This month’s plunge below growth neutral raises the possibility of a double-dip recession for the region,” said Ernie Goss, the Creighton University professor who conducts the 9-state survey that includes Missouri and Kansas.

A similar national report by the Institute for Supply Management remained in positive territory in November, at 53.6 compared with October’s reading of 55.7.

Goss tied the regional index’s decline to weak farm income and its impact on agricultural equipment makers.

State-wide readings for Kansas and Missouri also declined in November.

Kansas fell to a weak 42.1 from a neutral 50.0 in October.

Missouri’s index barely remained above neutral at 50.6, down from 53.4 in October.