Creighton University's Heider College of Business has issued its December 2014 Mid-America Business Conditions Index. Dr. Ernie Goss and his Creighton associations survey purchasing managers in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. They index responses on a scale of 0 to 100; under 50 means a sluggish economy over the next three to six months, while over 50 means a growing economy.
The regional index has been beating 50 since January 2013. Let's look at how South Dakota compared to the region and to Minnesota in 2014:
(The inventories index gauges inventories of raw materials and supplies. Larger inventories mean purchasing managers expect higher sales.)
On the overall MABCI, South Dakota spent most of the first half of the year looking better to purchasing managers than the regional average. South Dakota slid hard in July and finished the year just a tick below the regional overall index. On the five metrics that Goss breaks down by state, South Dakota finished ahead of the region on production and delivery lead time but below the region on new orders, employment, and inventories.
South Dakota's favorite measuring stick for economic performance and fiscal policy, Minnesota, started the year even with the region on the overall MABCI and stayed above average every month after that. Minnesota finished the year ahead of the regional MABCI in new orders, production, and inventories, close on employment, and a couple ticks below on delivery lead time.
On every metric but delivery lead time, Minnesota is beating South Dakota. Hmm... that seems like more evidence that Daugaardonomics is not working for South Dakota.
Possibly related: Minnesota lawmakers are trying to figure out what to do with a one-billion-dollar budget surplus.