Missouri’s Purchasing Managers’ Index (PMI) for August was 61.1, an increase of 8.8 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 August PMI® for manufacturing registered 58.5 an increase of 2.5 points from the July reading of 56.3 percent. The overall economy grew for the 99th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (60.3) decreased by 0.1 points while Production (61.0) showed an increase of 0.4 points. Supplier Deliveries (57.1) increased by 1.7 points while Inventories (55.0) increased 5.5 points from July. Employment (59.9) increased by 4.7 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 14 reported growth in August in the following order: Textile Mills; Petroleum & Coal Products; Machinery; Transportation Equipment; Fabricated Metal Products; Computer & Electronic Products; Paper Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Chemical Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; and Food, Beverage & Tobacco Products.
The non-manufacturing survey index for August was 55.3, increasing over the month by 1.4 points and still in expansion territory. Business activity (57.5) increased by 1.6 points while New Orders (57.1) increased by 2.0 points. Inventory (53.5) decreased by 3.0 points in August. Supplier Deliveries (50.5) decreased by 0.5 points while Employment (56.2) increased 2.6 points.
The 15 industries reporting growth in August— listed in order — are: Retail Trade; Information; Management of Companies & Support Services; Real Estate, Rental & Leasing; Other Services; Wholesale Trade; Utilities; Mining; Educational Services; Accommodation & Food Services; Finance & Insurance; Public Administration; Professional, Scientific & Technical Services; Construction; and Health Care & Social Assistance.
Missouri’s August PMI increased 8.8 points over the month to 61.1—welll above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (65.9), Iowa (57.7), Kansas (42.8), Minnesota (61.8), Nebraska (57.9), North Dakota (69.1), Oklahoma (56.2) and South Dakota (45.5). Overall, the August Mid America Regional Index increased to 57.5 from the previous month’s score of 56.1 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.