Missouri’s Purchasing Managers’ Index (PMI) for December was 57.1, an increase of 2.0 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 December PMI® for manufacturing registered 54.7 an increase of 1.5 points from the November reading of 53.2 percent. New Orders (60.2) increased by 7.2 points while Production (60.3) showed an increase of 4.3 points. Supplier Deliveries (52.9) decreased by 2.8 points while Inventories (47.0) decreased 2.0 points from November. Employment (53.1) increased by 0.8 points from the prior month. According to the PMI® report,11 out of 18 manufacturing industries grew in December: Petroleum & Coal Products; Primary Metals; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Paper Products; Machinery; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Fabricated Metal Products; and Chemical Products.
The non-manufacturing survey index for December was 57.2, remaining steady over the month and still in expansion territory. Business activity (61.4) decreased by 0.3 points while New Orders (61.6) increased by 4.6 points. Inventory (52.0) increased by 0.5 points in December. Supplier Deliveries (52.0) remained steady while Employment (53.8) decreased 4.4 points. The 12 non-manufacturing industries reporting growth in December are: Mining; Retail Trade; Finance & Insurance; Information; Arts, Entertainment & Recreation; Construction; Other Services; Health Care & Social Assistance; Professional, Scientific & Technical Services; Utilities; Transportation & Warehousing; and Accommodation & Food Services.
Missouri’s December PMI increased 2.0 points over the month to 57.1—this is above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (53.7), Iowa (51.7), Kansas (51.1), Minnesota (52.3), Nebraska (55.3), North Dakota (51.0), Oklahoma (48.8) and South Dakota (56.5). Overall, the December Mid America Regional Index rose to 53.1 from the previous month’s score of 46.5 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.