Missouri’s Purchasing Managers’ Index (PMI) for June was 53.8, an increase of 2.8 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 June PMI® for manufacturing registered 57.8 an increase of 2.9 points from the May reading of 54.9 percent. The overall economy grew for the 97th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (63.5) increased by 4.0 points while Production (62.4) showed an increase of 5.3 points. Supplier Deliveries (57.0) increased by 3.9 points while Inventories (49.0) decreased 2.5 points from May. Employment (57.2) increased by 3.7 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 15 reported growth in June in the following order: Furniture & Related Products; Nonmetallic Mineral Products; Paper Products; Machinery; Electrical Equipment, Appliances & Components; Chemical Products; Transportation Equipment; Computer & Electronic Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Printing & Related Support Activities; Fabricated Metal Products; Wood Products; Miscellaneous Manufacturing; and Petroleum & Coal Products.
The non-manufacturing survey index for June was 57.4, increasing over the month by 0.5 points and well in expansion territory. Business activity (60.8) increased by 0.1 points while New Orders (60.5) increased by 2.8 points. Inventory (57.5) increased by 3.5 points in June. Supplier Deliveries (52.5) increased by 1.0 points while Employment (55.8) decreased 2.0 points.
The 16 industries reporting growth in June — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Management of Companies & Support Services; Accommodation & Food Services; Public Administration; Transportation & Warehousing; Professional, Scientific & Technical Services; Health Care & Social Assistance; Mining; Information; Utilities; Educational Services; Construction; Real Estate, Rental & Leasing; Retail Trade; and Finance & Insurance.
Missouri’s June PMI increased 2.8 points over the month to 53.8—still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (66.1), Iowa (61.4), Kansas (56.3), Minnesota (68.0), Nebraska (61.3), North Dakota (67.2), Oklahoma (57.7) and South Dakota (67.4). Overall, the June Mid America Regional Index increased to 62.3 from the previous month’s score of 55.5 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.