The highly watched economic indicator for Arkansas and several other midwest states slumped to its lowest level in nearly three years amid concerns that ongoing tariffs and trade issues are being fully absorbed into the U.S. economy.

Creighton University’s Mid-America Business Conditions Index for August reported Tuesday that the regional indicator fell below growth neutral for the first time since November 2016. The economic snapshot, which ranges between 0 and 100, slumped to 49.3 from July’s 52.0. After 32 straight months of above growth neutral readings, the region’s overall index moved below 50.0 in August.

“The regional economy expanded at a slower pace than the rest of the nation for the first eight months  of 2019,” said Ernie Goss, director of Creighton University’s Economic Forecasting Group In Omaha, Neb. “Weakness in the region’s farm and manufacturing sectors produced by tariffs and a global economic slowdown pulled regional growth below that of the nation. Based on our manufacturing survey over the past several months, I expect overall growth to slow and potentially move into negative territory in the months ahead.”      MORE