Missouri’s Purchasing Managers’ Index (PMI) for March was 63.2, an increase of 5.2 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 March PMI® for manufacturing registered 59.3, a decrease of 1.5 points from the February reading of 60.8 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 107th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (61.9) decreased by 2.3 points while Production (61.0) decreased by 1.0 points. Supplier Deliveries (60.6) decreased by 0.5 points while Inventories (55.5) decreased 1.2 points from February. Employment (57.3) decreased by 2.4 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 17 reported growth in March, in the following order: Fabricated Metal Products; Plastics & Rubber Products; Computer & Electronic Products; Paper Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Transportation Equipment; Petroleum & Coal Products; Wood Products; Machinery; Chemical Products; Textile Mills; Electrical Equipment, Appliances & Components; Furniture & Related Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Primary Metals. The only industry reporting a decrease during the period is Apparel, Leather & Allied Products.
The non-manufacturing survey index for March was 58.8, decreasing over the month by 0.7 points but still well in expansion territory. Business activity (60.6) decreased by 2.2 points while New Orders (59.5) decreased by 5.3 points. Inventory (53.5) remained steady in March. Supplier Deliveries (58.5) increased by 3.0 points while Employment (56.6) increased 1.6 points. The 15 non-manufacturing industries reporting growth in March— listed in order — are: Mining; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Real Estate, Rental & Leasing; Wholesale Trade; Finance & Insurance; Management of Companies & Support Services; Professional, Scientific & Technical Services; Accommodation & Food Services; Public Administration; Construction; Health Care & Social Assistance; Other Services; and Utilities.
Missouri’s March PMI increased 5.2 points over the month to 63.2—well above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (53.7), Iowa (64.7), Kansas (63.8), Minnesota (61.0), Nebraska (63.4), North Dakota (42.5), Oklahoma (62.4) and South Dakota (67.4). Overall, the March Mid America Regional Index rose to 62.1 from the previous month’s score of 59.7 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.