Missouri’s Purchasing Managers’ Index (PMI) for August was 48.5, a decrease of 3.8 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 August PMI® for manufacturing registered 49.4 a decrease of 3.2 points from the July reading of 52.6 percent. New Orders (49.1) decreased by 7.8 points while Production (49.6) decreased 5.8 points. Supplier Deliveries (50.9) decreased by 0.9 points while Inventories (49.0) decreased 0.5 points from July. Employment (48.3) also decreased by 1.1 points from the prior month. According to the PMI® report, 6 out of 18 manufacturing industries grew in August: Nonmetallic Mineral Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Chemical Products; and Fabricated Metal Products.
The non-manufacturing survey index for August was 51.4, down 4.1 points over the month but still in expansion territory. Business activity (51.8) decreased by 7.5 points while New Orders (51.4) decreased by 8.9 points. Inventory (48.0) also decreased by 6.0 in August. Supplier Deliveries (51.5) grew by 0.5 points while Employment (50.7) fell by 0.7 points. The eleven non-manufacturing industries reporting growth in August were: Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Finance & Insurance; Educational Services; Health Care & Social Assistance; Public Administration; Management of Companies & Support Services; Professional, Scientific & Technical Services; Information; and Construction.
Missouri’s August PMI decreased 3.8 points over the month to 48.5. This is below the expansion threshold of 50.0. Other states in the survey were Arkansas (47.5), Iowa (48.3), Kansas (47.6), Minnesota (49.4), Nebraska (47.3), North Dakota (44.0), Oklahoma (44.0) and South Dakota (53.2). Overall, the August Mid America Regional Index increased to 47.8 from the previous month’s score of 47.6.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.