Missouri’s Purchasing Managers’ Index (PMI) for January was 53.6, a decrease of 1.7 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 January PMI® for manufacturing registered 59.1 a decrease of 0.2 points from the December reading of 59.3 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 104th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (65.4) decreased by 2.0 points while Production (64.5) also decreased by 0.7 points. Supplier Deliveries (59.1) increased by 1.9 points while Inventories (52.3) increased 3.8 points from December. Employment (54.2) decreased by 3.9 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries 14 reported growth in January in the following order: Textile Mills; Fabricated Metal Products; Plastics & Rubber Products; Primary Metals; Machinery; Transportation Equipment; Apparel, Leather & Allied Products; Chemical Products; Computer & Electronic Products; Paper Products; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; and Food, Beverage & Tobacco Products.
The non-manufacturing survey index for January was 59.9, increasing over the month by 3.9 points and still in expansion territory. Business activity (59.8) increased by 2.0 points while New Orders (62.7) increased by 8.2 points. Inventory (49.0) decreased by 4.5 points in January. Supplier Deliveries (55.0) remained steady while Employment (61.6) increased 5.3 points. The 15 industries reporting growth in January— listed in order — are: Management of Companies & Support Services; Arts, Entertainment & Recreation; Mining; Utilities; Retail Trade; Construction; Transportation & Warehousing; Public Administration; Real Estate, Rental & Leasing; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Educational Services; Finance & Insurance; Wholesale Trade; and Accommodation & Food Services.
Missouri’s January PMI decreased 1.7 points over the month to 53.6—this is above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (50.0), Iowa (58.0), Kansas (59.6), Minnesota (55.8), Nebraska (53.7), North Dakota (49.6), Oklahoma (57.8) and South Dakota (56.8). Overall, the January Mid America Regional Index slipped to 57.3 from the previous month’s score of 59.0 percent. This is the 14th straight month the Mid America Regional Index has remained above growth neutral, continuing to point to growth for the region over the next three to six months.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.