Missouri’s Purchasing Managers’ Index (PMI) for September was 47.3, a decrease of 1.2 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 51.5 an increase of 2.1 points from the August reading of 49.4 percent. New Orders (55.1) increased by 6.0 points along with Production’s (52.8) increase of 3.2 points. Supplier Deliveries (50.3) decreased by 0.6 points while Inventories (49.5) increased 0.5 points from August. Employment (49.7) increased by 1.4 points from the prior month. According to the PMI® report, 7 out of 18 manufacturing industries grew in September: Nonmetallic Mineral Products; Furniture & Related Products; Textile Mills; Food, Beverage & Tobacco Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Paper Products.
The non-manufacturing survey index for September was 57.1, up 5.7 points over the month and still in expansion territory. Business activity (60.3) increased by 8.5 points while New Orders (60.0) also increased by 8.6 points. Inventory (51.0) increased by 3.5 points in September. Supplier Deliveries (51.0) decreased slightly by 0.5 points while Employment (57.2) was up by 6.5 points. The 14 non-manufacturing industries reporting growth in September are: Agriculture, Forestry, Fishing & Hunting; Utilities; Retail Trade; Management of Companies & Support Services; Information; Health Care & Social Assistance; Transportation & Warehousing; Finance & Insurance; Construction; Other Services; Wholesale Trade; Public Administration; Accommodation & Food Services; and Professional, Scientific & Technical Services.
Missouri’s September PMI decreased 1.2 points over the month to 47.3—this is below the 50.0 percent expansion threshold. Other states in the survey were Arkansas (45.7), Iowa (48.0), Kansas (43.9), Minnesota (48.4), Nebraska (44.6), North Dakota (48.2), Oklahoma (40.3) and South Dakota (51.1). Overall, the September Mid America Regional Index fell to 45.5 from the previous month’s score of 47.8 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.