Watching Iowa’s Economy: May 2023

Here is CIRAS’s quick look at major economic indicators for Iowa. For an introduction and a description of the indicators used, see our first post.

Indicator Status Underlying Data Notes
ISM Manufacturing PMI® Manufacturing contracted for the sixth consecutive month. Indicators were generally split between contracting and growing, as the rate of contraction slowed from last month.
Mid-American Index Midwest manufacturing remained in the growth phase for the third straight month, with Confidence as the only indicator below 50.
Iowa Index Iowa’s economy quickly rebounded from a drop last month, showing very strong indicators in all categories.
Iowa New Unemployment Claims Initial unemployment claims in Iowa remain low. Manufacturing initial claims remain below typical pre-COVID historical averages.


CIRAS Assessment
Iowa’s manufacturing economy continues to hover near neutral, with growth this month making up for contraction the previous month. While the national PMI indicated continued contraction, most indicators remained near neutral, with the exception of backlog. There are no major indicators at this time of significant acceleration or slowdown in manufacturing; however, the impacts of recent banking failures and potential Federal Reserve rate increases may create unforeseen disruptions.

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