By Allison Peck
Nebraska’s manufacturing sector began 2026 under continued pressure, according to the latest Creighton University Mid-America Business Conditions Index.
For the fourth time in the past five months, the overall Mid-America index fell below growth neutral, signaling ongoing weakness across the region. Nebraska’s January Business Conditions Index improved slightly to 44.6 from 40.5 in December but remained well below the 50.0 level that indicates economic growth.
The index is based on a monthly survey of supply managers and uses the same methodology as the national Institute for Supply Management.
“Creighton’s latest survey indicates that the regional manufacturing economy continues to move sideways to lower,” said Ernie Goss, director of Creighton University’s Economic Forecasting Group. “Wholesale inflation has moderated, but employment remains weak.”
Nebraska manufacturers continued to lose jobs in January, marking the 10th consecutive month that the regional employment index remained below growth neutral. Nebraska’s employment component registered 48.7 for the month.
Long-term trends show deeper challenges. According to U.S. Bureau of Labor Statistics data, the nine-state Mid-America region — which includes Nebraska — has lost more than 333,000 manufacturing jobs over the past 25 years, representing roughly 20 percent of its manufacturing workforce.
Trade conditions also remained strained. New export orders fell below growth neutral, and imports continued to decline as higher prices and trade restrictions limited overseas purchasing. According to the U.S. International Trade Administration, Nebraska manufacturing exports totaled $5.2 billion during the first 10 months of 2025, down from $5.8 billion during the same period in 2024 — an 11.9 percent decrease.
Tariffs continued to influence business decisions. About 31 percent of survey respondents said tariffs forced their firms to change suppliers, with some reporting a shift toward domestic purchasing.
Despite weak conditions, economic confidence improved. The Business Confidence Index climbed to its highest level in 12 months as wholesale inflation moderated and tariff policies stabilized.
Other Nebraska index components for January included new orders at 49.7, production at 47.2, delivery lead times at 45.5, and inventories at 31.7, indicating reduced stockpiling following earlier concerns over tariffs.
The Mid-America Business Conditions Index surveys manufacturers in nine states: Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota. February survey results are scheduled for release on the first business day of March.