Missouri’s Purchasing Managers’ Index (PMI) for October was 52.5, a decrease of 2.3 points, but still well in expansion territory, 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 October PMI® for manufacturing registered 57.7, decreasing 2.1 points from the September reading of 59.8 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 114th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (57.7) decreased by 4.4 points while Production (59.9) also decreased by 4.0 points. Supplier Deliveries (63.8) increased by 2.7 points while Inventories (50.7) decreased 2.6 points from September. Employment (56.8) decreased by 2.0 points from the prior month.
Of the 18 manufacturing industries, 13 reported growth in October, in the following order: Textile Mills; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Furniture & Related Products; Miscellaneous Manufacturing; Machinery; Transportation Equipment; Printing & Related Support Activities; Chemical Products; and Paper Products.
The non-manufacturing survey index for October was 60.3, decreasing over the month by 1.3 points, still well in expansion territory. Business activity (62.5) decreased by 2.7 points while New Orders (61.5) decreased by 0.1 points. Inventory (56.0) increased by 1.5 points. Supplier Deliveries (57.5) increased by 0.5 points while Employment (59.7) decreased 2.7 points. The 17 non-manufacturing industries reporting growth in October — listed in order — are: Real Estate, Rental & Leasing; Information; Transportation & Warehousing; Utilities; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; Construction; Health Care & Social Assistance; Management of Companies & Support Services; Wholesale Trade; Public Administration; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Mining; Finance & Insurance; Retail Trade; and Other Services.
Missouri’s October PMI decreased 2.3 points over the month to 52.5 - but still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (52.9), Iowa (51.8), Kansas (51.4), Minnesota (54.9), Nebraska (51.5), North Dakota (61.3), Oklahoma (55.0) and South Dakota (52.6). Overall, the October Mid America Regional Index decreased to 54.9 from the previous month’s score of 57.5 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.