Minnesota's manufacturing sector saw signs of growth last month after experiencing big declines in the past several months because of the COVID-19 pandemic.
Demand picked up with new orders surging in July, helping fuel a partial bounceback in economic activity, according to a monthly survey of supply managers. But jobs in the industry continue to struggle and are expected to see some small losses in coming months.
The state's index in the Creighton University Mid-America Business Conditions Index rose into positive territory for the first time since February. It climbed to 54.7 in July, up from 45.0 in June.
It had plummeted to 34.8 in April, the lowest point during the pandemic. Anything above 50 signals growth while below 50 suggests contraction.
"You could characterize it as getting less negative," said Ernie Goss, director of the forecasting group that oversees the index. "We've still got many more months before we get back to pre-COVID-19 levels. We took such a downturn in March and April that we're still digging out of that."
Minnesota's export-heavy manufacturing industry had been harder hit than other states in the region. While still negative, the export numbers showed improvement in the report, which was released Monday.
The regional index of all nine states logged in at 57.4 in July after bouncing back to 50.3 in June.
"Overall, the economy is improving," said Goss. "We've seen improvements now for a couple of months."