Missouri’s Purchasing Managers’ Index (PMI) for December was 55.7, 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 decreased in December to 55.5 from 58.7 the previous month. The national index is above the neutral threshold of 50 for 19 consecutive months. The index indicators that increased were Employment (56.8) and Supplier Deliveries (59.3). The index indicators that declined were Production (58.8), New Orders (57.3), Imports (55), Inventories (45.5), and New Export Orders (52). The ISM non-manufacturing index decreased in December to 56.2 from 59.3 the previous month. The index indicators that decreased were Business Activity (57.2), Exports (53.5), Inventories (50), Backlogs (49.5), Imports (50), Employment (56), and New Orders (58.9). No index indicator had an increase this month.
Missouri’s December PMI increased to 55.7 from 54.9 the previous month. The index has been above the neutral threshold of 50 for 24 consecutive months. Other states in the survey were Arkansas (51.7), Iowa (53.4), Kansas (62.6), Minnesota (61.4), Nebraska (52.7), North Dakota (52.7), Oklahoma (54) and South Dakota (52.4). Overall, December’s Mid American Regional Index increased to 54.4 from the previous month’s score of 51.3. The increase of the index may show that there would be economic growth in the short term, especially since the index has been above 50 for 24 consecutive months.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.