Missouri’s Purchasing Managers’ Index (PMI) for February was 58.0, an increase of 4.4 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 February PMI® for manufacturing registered 60.8 an increase of 1.7 points from the January reading of 59.1 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 106th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (64.2) decreased by 1.2 points while Production (62.0) decreased by 2.5 points. Supplier Deliveries (61.1) increased by 2.0 points while Inventories (56.7) increased 4.4 points from January. Employment (59.7) increased by 5.5 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries 15 reported growth in February in the following order: Printing & Related Support Activities; Primary Metals; Machinery; Computer & Electronic Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Transportation Equipment; Textile Mills; Miscellaneous Manufacturing; Paper Products; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products.
The non-manufacturing survey index for February was 59.5, decreasing over the month by 0.4 points but still well in expansion territory. Business activity (62.8) increased by 3.0 points while New Orders (64.8) increased by 2.1 points. Inventory (53.5) increased by 4.5 points in February. Supplier Deliveries (55.0) remained steady while Employment (55.0) decreased 6.6 points. The 15 non-manufacturing industries reporting growth in February— listed in order — are: Educational Services; Transportation & Warehousing; Utilities; Real Estate, Rental & Leasing; Wholesale Trade; Finance & Insurance; Management of Companies & Support Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Other Services; Construction; Mining; Public Administration; Retail Trade; Agriculture, Forestry, Fishing & Hunting; and Information.
Missouri’s February PMI increased 4.4 points over the month to 58.0—well above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (55.4), Iowa (59.4), Kansas (62.4), Minnesota (57.6), Nebraska (58.3), North Dakota (53.3), Oklahoma (60.5) and South Dakota (56.6). Overall, the February Mid America Regional Index rose to 59.7 from the previous month’s score of 57.3 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.