Missouri’s Purchasing Managers’ Index (PMI) for July was 52.3, 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. Missouri’s PMI index is still at an expansionary level and leading the Midwest for the third consecutive month.
The July PMI® for manufacturing registered 52.6, a decrease of 0.6 points from the June reading of 53.2 percent. New Orders (56.9) decreased by 0.1 points while Production (55.4) increased 0.7 points. Supplier Deliveries (51.8) decreased by 3.6 points while Inventories (49.5) increased 1.0 points from June. Employment (49.4) decreased by 1.0 points from the prior month. According to the PMI report, 11 out of 18 manufacturing industries grew in July: Textile Mills, Printing & Related Support Activities, Miscellaneous Manufacturing, Wood Products, Furniture & Related Products, Chemical Products, Food, Beverage & Tobacco Products, Fabricated Metal Products, Nonmetallic Mineral Products, Petroleum & Coal Products and Computer & Electronic Products.
The non-manufacturing survey index for July was 55.5, down 1.0 points over the month but still in expansion territory. Business activity (59.3) decreased by 0.2 points while New Orders (60.3) increased by 0.4 points. Inventory (54.0) decreased by 1.5 in July. Supplier Deliveries (51.0) contracted by 3.0 points while Employment (51.4) also decreased by 1.3 points.
Missouri’s July PMI decreased 1.7 points over the month to 52.3. This is well above the expansion threshold of 50.0. Other states in the survey were Arkansas (47.3), Iowa (47.9), Kansas (47.0), Minnesota (51.2), Nebraska (47.0), North Dakota (40.8), Oklahoma (45.2) and South Dakota (50.2). Overall, July’s Mid America Regional Index decreased to 47.6 from the previous month’s score of 50.1.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.