11:22 a.m. - OMAHA, Neb. (AP) -- The Institute for Supply Management, formerly the Purchasing Management Association, began to formally survey its membership in 1931 to gauge business conditions. The Creighton Economic Forecasting Group uses the same methodology as the national survey.

The overall index, referred to as the Business Conditions Index, ranges between 0 and 100. An index greater than 50 indicates an expansionary economy over the course of the next three to six months.

Below are the summary analyses from surveys from each of the nine states in the region.

Arkansas: Arkansas business conditions index dropped for the second straight month but still suggested growth into the fourth quarter of this year.

The index dropped to 57.9 in July, down from 61.9 in June and 65.1 in May.

Components of the overall index: new orders, 57.5; production, 62.5; delivery speed, 55.0; inventories, 57.5; and employment, 55.1.

Trucking firms report solid growth in shipping.

The Arkansas unemployment rate has dropped to its lowest level since before the 2001 recession.

"I expect the unemployment rate to drop by another 0.2 (percentage points) by year's end," said Creighton University professor Ernie Goss, director of the Creighton Economic Forecasting Group.

Arkansas added almost 8,000 jobs in the first half of the year.

"Based on our survey I expect the state to add approximately 7,000 jobs in the second half of the year, for a 1.3 percent job growth for all of 2005," said Goss.

Iowa: The overall index dipped to 60.1 from 60.6 in June.

Components of the overall index: new orders, 62.2; production, 60.5; delivery speed, 45.8; employment, 68.9; and inventories, 56.9.

Most industries in Iowa reported better economic conditions.

"We are even recording solid economic expansions for Iowa's high-tech sector," Goss said.

The unemployment rate has dipped by one-half of 1 percentage point this year, while firms have added more than 14,000 workers.

"By the end of 2005, based on our survey, Iowa's unemployment rate will decline … and employment will grow by another 15,000 jobs. … This will represent the best job growth for the state since 1999," Goss said.

Kansas: The business conditions index dropped for the second consecutive month, to a still expansionary 57.7 in July but down from June's 61.5 and May's 65.0.

Components of the business conditions index: new orders, 57.1; production, 67.9; delivery speed, 42.9; inventories, 35.7; and employment, 67.9.

New hiring and longer work hours among transportation equipment manufacturers offset weaker conditions among beef processing firms and telecommunications firms in the state. Kansas added nearly 11,000 jobs in the first half of the year, although the unemployment rate barely moved from the 5.2 percent reported for January.

"Based on our survey, I expect Kansas to add another 12,000 jobs for the second half of the year, with the unemployment rate dipping by 0.5 (percentage points) by year's end," Goss said. "Growth in 2005 for Kansas will be the best since 1998," he said.

Minnesota: The overall index increased for the third straight month, to 56.6 from 54.2 in June and 50.3 in May.

Components of the overall index were: new orders, 58.0; production, 60.2; delivery speed, 52.0; inventories, 57.8; and employment, 52.9.

Computer and electronic equipment manufacturers and transportation equipment producers reported expansions for July, offsetting weakness among telecommunication firms.

"Minnesota has added just over 21,000 jobs thus far for 2005. Based on our survey, I expect the state to gain another 20,000 for the rest of 2005," Goss said, "pushing overall job growth for 2005 to 1.6 percent."

"This will be the best showing for the Minnesota labor market since 2000," he said.

Missouri: For the sixth time in 2005, the overall Missouri index declined.

The July reading was 51.5, down from 56.0 in June, The 51.5 was the lowest level since September 2003.

Components of the overall index were: new orders, 49.2; production, 50.0; delivery speed, 55.5; inventories, 50.0; and employment, 54.7.

Missouri added more than 24,000 jobs in the first half of 2005.

"Based on our survey, job growth will be somewhat slower for the second half, with less than 20,000 jobs being added, bringing job growth for the full year to 1.6 percent, its best performance since 1999," Goss said.

Nebraska: The overall index rose to its highest level since October 1994: 67.7, compared with 63.7 in June and 61.4 in May.

Components of the overall index were: 74.5 for new orders, 74.7 for production, 46.4 for delivery speed, 64.5 for inventories and 66.4 for employment.

Nebraska's growing information and truck transportation industries more than offset weakness among beef processors for July.

The state gained more than 9,000 jobs in the first half of the year, Goss said.

"I expect Nebraska to add another 10,500 jobs in the second half of the year," he said, "pushing job growth for the full year to 2 percent."

North Dakota: The overall index declined to a still healthy 61.5 from 63.8 in June.

Components of the overall index were: new orders at 53.6, production at 64.3, delivery speed at 60.7, employment at 67.9 and inventories at 66.7.

Higher oil prices were helping the state's energy firms, Goss said, and North Dakota reported strong farm income.

The state has added almost 5,000 jobs since the first of the year, although the unemployment rate has barely moved from 3.3 percent in January.

"Based on our survey, I expect North Dakota to add another 3,000 jobs for the second half of the year," Goss said. "North Dakota's 2005 job growth at 2.3 percent will be the best since 1997," he said.

Oklahoma: Oklahoma's business conditions index dropped for the fourth consecutive month. Yet the number remained in the growth range, 54.2, down from 54.6 in June and 56.5 in May.

Component readings for July were: new orders at 55.3, production at 55.3, delivery speed at 45.2, inventories at 61.1 and employment at 53.2.

Lower numbers from durable-goods manufacturers lowered the overall index.

Oklahoma has added nearly 10,000 jobs since Jan. 1, and the unemployment rate has dropped 0.3 percentage points since the January figure.

"Based on our survey, I expect the state to add another 11,000 jobs for the second half of the year," Goss said. Oklahoma's 2005 job growth at 1.4 percent will be slightly under the strong growth in 2004 strong growth, he said.

South Dakota: The overall index rose to a regional high of 74.4, compared with 70.2 in June.

Components of the index were: new orders at 76.2, production at 88.1, delivery speed at 57.1, inventories at 57.1 and employment at 76.2.

Durable-goods manufacturers, other than computer and electronic component producers, reported for July.

South Dakota gained almost 5,000 jobs in the first half of 2005.

"Based on our survey, I expect the state to add another 4,500 jobs for the second half of the year," Goss said. "South Dakota's 2005 job growth at 2.6 percent will be the best since 1999," he said.

On the Web:

Institute for Supply Management: www.outlook-economic.com