Missouri’s Purchasing Managers’ Index (PMI) for July was 52.3, a decrease of 1.5 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 July PMI® for manufacturing registered 56.3 a decrease of 1.5 points from the June reading of 57.8 percent. The overall economy grew for the 98th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (60.4) decreased by 3.1 points while Production (60.6) showed a decrease of 1.8 points. Supplier Deliveries (55.4) decreased by 1.6 points while Inventories (50.0) increased 1.0 points from June. Employment (55.2) decreased by 2.0 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 15 reported growth in July in the following order: Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Wood Products; Fabricated Metal Products; Machinery; Chemical Products; Paper Products; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Computer & Electronic Products; Nonmetallic Mineral Products; Furniture & Related Products; Miscellaneous Manufacturing; Primary Metals; and Transportation Equipment.
The non-manufacturing survey index for July was 53.9, decreasing over the month by 3.5 points but still in expansion territory. Business activity (55.9) decreased by 4.9 points while New Orders (55.1) decreased by 5.4 points. Inventory (56.5) decreased by 1.0 points in July. Supplier Deliveries (51.0) decreased by 1.5 points while Employment (53.6) decreased 2.2 points.
The 15 non-manufacturing industries reporting growth in July — listed in order — are: Accommodation & Food Services; Information; Educational Services; Other Services; Utilities; Public Administration; Wholesale Trade; Retail Trade; Mining; Real Estate, Rental & Leasing; Construction; Transportation & Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Finance & Insurance.
Missouri’s July PMI decreased 1.5 points over the month to 52.3—still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (61.2), Iowa (54.9), Kansas (45.9), Minnesota (63.2), Nebraska (58.0), North Dakota (66.7), Oklahoma (49.4) and South Dakota (53.3). Overall, the July Mid America Regional Index decreased to 56.1 from the previous month’s score of 62.3 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.