Missouri’s Purchasing Managers’ Index (PMI) for January was 55.0, an increase of 1.1 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 January PMI® for manufacturing registered 56.6, increasing 2.3 points from the December reading of 54.3 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 117th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (58.2) increased by 6.9 points while Production (60.5) increased by 6.4 points. Supplier Deliveries (56.2) decreased by 2.8 points while Inventories (52.8) increased 1.6 points from December. Employment (55.5) decreased by 0.5 points from the prior month.
Of the 18 manufacturing industries, 14 reported growth in January, in the following order: Textile Mills; Computer & Electronic Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Furniture & Related Products; Printing & Related Support Activities; Primary Metals; Chemical Products; Transportation Equipment; Machinery; Fabricated Metal Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components.
The non-manufacturing survey index for January was 56.7, decreasing over the month by 1.3 points, still well in expansion territory. Business activity (59.7) decreased by 1.5 points while New Orders (57.7) decreased by 5.0 points. Inventory (49.0) decreased by 2.5 points. Supplier Deliveries (51.5) remained steady while Employment (57.8) increased 1.2 points. The 11 non-manufacturing industries reporting growth in January — listed in order — are: Transportation & Warehousing; Health Care & Social Assistance; Mining; Accommodation & Food Services; Wholesale Trade; Finance & Insurance; Utilities; Real Estate, Rental & Leasing; Construction; Professional, Scientific & Technical Services; and Public Administration.
Missouri’s January PMI increased 1.1 points over the month to 55.0 - and still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (54.6), Iowa (54.8), Kansas (53.3), Minnesota (54.5), Nebraska (50.5), North Dakota (49.8), Oklahoma (57.1) and South Dakota (66.2). Overall, the January Mid America Regional Index increased to 56.0 from the previous month’s score of 55.2 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.