Economic Outlook
Mid-America Manufacturing Demonstrates Solid Economic Growth
41.7% of Supply Managers Reported Negative Profit Impacts from Tariffs
September 2026 Survey Highlights:
- The overall index moved above growth neutral for an eighth straight month.
- For only the fourth time in the past 12 months, the employment index rose above growth neutral. Even so, employment growth continues to lag overall economic growth.
- Approximately, 41.7% of supply managers reported that tariffs were having a negative impact on profits.
- On average, supply managers reported that approximately 28.5% of tariffs were passed along to buyers.
- Continued elevated inflation at the wholesale level points to at least one more Federal Reserve interest rate hike before the end of 2026.
- Approximately, 58% of supply managers reported that the Iran conflict has made the supply chain less reliable.
