Missouri’s Purchasing Managers’ Index (PMI) for October was 57.1, according to the monthly Mid-American Business Conditions Survey, conducted by Creighton University, Omaha, NE.
Economists consider the index, which measures such factors as new orders, production, supplier delivery times, backlogs, inventories, prices, employment, import orders and exports, a key economic indicator. Typically, a score greater than 50 indicates an expansionary economy, while a score below 50 forecasts a sluggish economy for the next three to six months.
The ISM national manufacturing index increased in October to 59 from 56.6 the previous month. The national index is above the neutral threshold of 50 for 17 consecutive months. The index indicator that increased was Production (64.8), New Orders (65.8), Inventories (52.5), Employment (55.5), Imports (54.5), and Supplier Deliveries (56.2). The index indicator that declined was New Export Orders (51.5). The ISM non-manufacturing index decreased in October to 58.6 from 59.6 the previous month. The index indicators that grew were Employment (58.5), Imports (52.5), Exports (57.5), and Inventories (52). The index indicators that declined were Business Activity (62.9), New Orders (61), and Backlogs (52).
Missouri’s October PMI declined to 57.1 from 57.7 the previous month. The index has been above the neutral threshold of 50 for 22 consecutive months. Other states in the survey were Arkansas (49.3), Iowa (51.4), Kansas (62.4), Minnesota (63), Nebraska (50.3), North Dakota (54.8), Oklahoma (48) and South Dakota (51.8). Overall, October’s Mid American Regional Index declined to 51.8 from the previous month’s score of 54.3. The decline of the index may show concerns about the economy in the short term, but the index has been above 50 for 21 consecutive months which shows the economy is still growing.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.