The economy for Oklahoma and 8 other states that make up the Mid-America Business Conditions Index was so strong in October that it scares economist Ernie Goss. And energy is getting the credit in Oklahoma.
“It was a good report but some worries. We economists worry when things become so strong,” said the economics professor at Creighton University in Omaha, Nebraska. “We’re the guys and gals who take away the punch bowl when the party gets started.”
The survey covers nine states stretching from Arkansas and Oklahoma to North Dakota climbed to a reading that points to health economic growth ahead.
“Both the national and our regional indices indicate the manufacturing sector is expanding at a very healthy pace and that this expansion will spill over into the broader national and regional economies in the next three to six months,” explained Goss.
The Business Conditions Index which ranges from 1 and 100 rose to 58.8, its highest reading in four months and up from 58.2 in September. It was also the 11th straight month that the index has remained above growth neutral.
His survey found what he called a “robust” economy in Oklahoma. After falling below growth neutral in July, the state’s Business Conditions Index rose above the 50.0 threshold for the last three months then hit 63 in October, up from 62.7 in September.
“Components of the overall October index from a survey of supply managers in the state were new orders at 65.2, production or sales at 70.8, delivery lead time at 60.9, inventories at 59.2 and employment at 58.9,” said Goss.
“Expansions among energy firms and manufacturing companies linked to energy are driving the state’s economy forward at a current brisk pace,” he added.