Missouri’s Purchasing Managers’ Index (PMI) for September was 63.9, an increase of 2.8 points 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 September PMI® for manufacturing registered 60.8 an increase of 2.0 points from the August reading of 58.8 percent. Economic activity in the manufacturing sector grew for the 100th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (64.6) increased by 4.3 points while Production (62.2) showed an increase of 1.2 points. Supplier Deliveries (64.4) increased by 7.3 points while Inventories (52.5) decreased 3.0 points from August. Employment (60.3) increased by 0.4 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 17 reported growth in September in the following order: Textile Mills; Machinery; Nonmetallic Mineral Products; Transportation Equipment; Plastics & Rubber Products; Paper Products; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Chemical Products; Fabricated Metal Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; and Primary Metals.
The non-manufacturing survey index for September was 59.8, increasing over the month by 4.5 points and still in expansion territory. Business activity (61.3) increased by 3.8 points while New Orders (63.0) increased by 5.9 points. Inventory (51.5) decreased by 2.0 points in September. Supplier Deliveries (58.0) increased by 7.5 points while Employment (56.8) increased 0.6 points.
The 15 industries reporting growth in September— listed in order — are: Retail Trade; Other Services; Management of Companies & Support Services; Information; Utilities; Transportation & Warehousing; Real Estate, Rental & Leasing; Wholesale Trade; Construction; Professional, Scientific & Technical Services; Finance & Insurance; Health Care & Social Assistance; Public Administration; Educational Services; and Accommodation & Food Services.
Missouri’s September PMI increased 2.8 points over the month to 63.9—well above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (67.3), Iowa (60.7), Kansas (43.6), Minnesota (59.4), Nebraska (59.3), North Dakota (63.9), Oklahoma (62.7) and South Dakota (46.6). Overall, the September Mid America Regional Index increased to 58.2 from the previous month’s score of 57.5 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.