CORRECTED-Mid-America states in recession - survey

(Corrects second paragraph to show comparison with September and not August)

CHICAGO, Nov 3 (Reuters) - An index of business conditions in nine U.S. Midwest and south-central states hit a record low in October, indicating a recession in the region, according to an economic survey released on Monday.

Creighton University's Business Conditions Index fell to 39.9 last month from 49.6 in September. A reading above 50 indicates an economic expansion over the next three to six months.

"In the 14 years that we have conducted the monthly survey, October's was the weakest ever," said Creighton University Economics Professor Ernie Goss in a statement. "The regional economy is now in a recession and I expect the downturn to deepen in the months ahead."

The survey's employment index remained weak at 47.4 last month versus 47.0 in September as the region experienced job losses for the ninth time in the past 10 months.

"The regional job market has not been good in 2008," Goss said. "However, with less and less support from exports, and fallout from the national credit crunch, I expect even more job losses and rising unemployment well into 2009. The question is no longer whether we are in a recession, but how long will it last."

Meanwhile, the survey's prices-paid index, which tracks the cost of raw materials and supplies, fell to 61.6 in October from 84.0 in September, and well below July's record high of 93.9.

Supply managers and business leaders were surveyed in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

The Omaha, Nebraska-based Creighton Economic Forecasting Group has conducted the monthly survey since 1994 using the same methodology as the National Institute for Supply Management. (Reporting by Karen Pierog; Editing by Andrea Ricci)