News Releases for March 2003
March 17, 2003
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Hoeven: New Surveys Forecast Growth In Economy, Manufacturing
State Shows Growth Relative To Neighboring States
BISMARCK, N.D. - Gov. John Hoeven today welcomed new data from two independent business surveys indicating that North Dakota’s general economy and manufacturing sector are growing.
According to Creighton University’s Mid-America Business Conditions Survey, North Dakota’s overall economic index rose to 52.3 in February, up from 51.3 in January. Indexes above 50 indicate an expanding economy.
At the same time, the Minneapolis Federal Reserve Bank released a survey last week showing that North Dakota’s manufacturing sector is on the upswing, outpacing growth among six neighboring states in several important categories. Manufacturers from North Dakota, South Dakota, Minnesota, Montana, Wisconsin and Michigan participated in the Upper Midwest study.
“Both of these surveys are consistent with recent information from Economy.com, the state’s financial consulting firm, which two weeks ago reported that North Dakota’s economy is expected to expand,” Hoeven said. “Our commitment over the past two years to improve the state’s business climate and make investments in our people is certainly a key factor in the state’s economic growth and stability.”
According to Ernest Goss, a Creighton University economist who conducts the Mid-America survey, “This was the sixth consecutive month that the [North Dakota] survey of supply managers and business leaders produced an overall index above growth neutral 50.”
Separately, the Minneapolis Federal Reserve survey indicates that North Dakota manufacturers of all sizes expect growth in orders and production in the first half of 2003 compared with the second half of 2002. In addition, the state’s medium and large firms expect to see increases in employment, investment and profits. The report also shows that medium and large firms are looking forward to economic growth for the state over the next six months.
Among the six states, employment and investment are expected to decrease slightly for small manufacturing firms in Minnesota, Montana and South Dakota, but rise for medium and large firms in North Dakota and western Wisconsin, according to the data. The survey reports that only North Dakota and Wisconsin anticipate expanding capital investment in manufacturing.
“We have been working hard to strengthen North Dakota’s business environment,” Hoeven said. “Reports like these indicate that we’re moving in the right direction, and that we need to sustain our momentum.”
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