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Report: Drought May Deepen Economic Woes

Report: Drought May Deepen Economic Woes Click to Enlarge Photo: Comstock Images, Photos.com

Aug 2, 2012 at 8:43 am

OMAHA, NE (KNSI) - The ongoing drought, combined with the global economic turmoil, is hurting business in nine Midwest and Plains states and increasing worries about the possibility of another recession.

A report released Wednesday says July's Mid-America Business Conditions Index plunged below growth neutral for the first time since 2008. The index hit 48-point-7, compared with 57-point-2 in June.

Creighton University economists oversee the survey and report the drought will hurt farm income and the strengthening dollar hurts exports.

The survey of business leaders and supply managers uses a collection of indexes ranging from zero to 100. Any score above 50 suggests growth while a score below 50 suggests decline for that factor.

JW Cox

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