North Dakota’s economy has been experiencing a slowdown for the fourth consecutive month, according to Dr. Ernie Goss, an economics professor at Creighton University. He conducts a monthly survey of manufacturing supply managers in the Mid-America Region and noted that the business conditions index for June was 45.5, slightly higher than May’s 40.2 but still below the 50 threshold that indicates a shrinking economy. Despite this, Goss remains optimistic about the overall economic outlook for North Dakota.
The slowdown is being attributed to decreased activity in key industries such as energy and agriculture, as well as a decrease in exports by 16 percent compared to the same time last year. However, Goss highlights North Dakota’s inherent strengths as a major producer of food and energy commodities which will ultimately lead to long-term success despite the current tough spell.
Despite these challenges, Goss mentions that there has been a decrease in inflationary pressures which he predicts will prompt the Federal Reserve to lower interest rates at their upcoming meeting in September to stimulate economic growth. The USDA has projected a decrease in farm income for 2024, affecting agricultural equipment manufacturing companies like John Deere.
Overall, Goss believes that North Dakota’s inherent strengths will help it weather this tough period and emerge stronger in the long run.