Missouri’s Purchasing Managers’ Index (PMI) for November was 54.7, an increase of 2.2 points, and still well in expansion territory, according to the monthly Mid-America 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.
The December PMI® for manufacturing registered 54.1, decreasing 5.2 points from the November reading of 59.3 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 116th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (51.1) decreased by 11.0 points while Production (54.3) decreased by 6.3 points. Supplier Deliveries (57.5) decreased by 5.0 points while Inventories (51.2) increased 1.7 points from November. Employment (56.2) decreased by 2.2 points from the prior month.
Of the 18 manufacturing industries, 11 reported growth in December, in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Transportation Equipment; Computer & Electronic Products; Wood Products; Chemical Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; and Primary Metals.
The non-manufacturing survey index for December was 57.6, decreasing over the month by 3.1 points, still well in expansion territory. Business activity (59.9) decreased by 5.3 points while New Orders (62.7) increased by 0.2 points. Inventory (51.5) decreased by 6.0 points. Supplier Deliveries (51.5) decreased by 5.0 points while Employment (56.3) decreased 2.1 points. The 16 non-manufacturing industries reporting growth in December — listed in order — are: Arts, Entertainment & Recreation; Transportation & Warehousing; Health Care & Social Assistance; Retail Trade; Information; Utilities; Accommodation & Food Services; Professional, Scientific & Technical Services; Public Administration; Other Services; Finance & Insurance; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Educational Services; Construction; and Management of Companies & Support Services.
Missouri’s December PMI decreased 0.8 points over the month to 53.9 - and still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (50.5), Iowa (53.5), Kansas (49.7), Minnesota (55.5), Nebraska (49.7), North Dakota (52.6), Oklahoma (56.4) and South Dakota (63.1). Overall, the December Mid America Regional Index increased to 55.2 from the previous month’s score of 54.1 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.