Missouri’s Purchasing Managers’ Index (PMI) for September was 54.8, a decrease of 1.7 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 September PMI® for manufacturing registered 59.8, decreasing 1.5 points from the August reading of 61.3 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 113th consecutive month, according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (61.8) decreased by 3.3 points while Production (63.9) increased by 0.6 points. Supplier Deliveries (61.1) decreased by 3.4 points while Inventories (53.3) decreased 2.1 points from August. Employment (58.8) increased by 0.3 points from the prior month.
Of the 18 manufacturing industries, 15 reported growth in September, in the following order: Textile Mills; Miscellaneous Manufacturing; Plastics & Rubber Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; Apparel, Leather & Allied Products; Paper Products; Electrical Equipment, Appliances & Components; Chemical Products; Petroleum & Coal Products; Transportation Equipment; Furniture & Related Products; Fabricated Metal Products; and Nonmetallic Mineral Products.
The non-manufacturing survey index for September was 61.6, increasing over the month by 3.1 points and still in expansion territory. Business activity (65.2) increased by 4.5 points while New Orders (61.6) increased by 1.2 points. Inventory (54.5) increased by 1.0 points. Supplier Deliveries (57.0) increased by 1.0 points while Employment (62.4) increased 5.7 points. 17 non-manufacturing industries reporting growth in September — listed in order — are: Mining; Real Estate, Rental & Leasing; Wholesale Trade; Management of Companies & Support Services; Construction; Retail Trade; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; Transportation & Warehousing; Information; Accommodation & Food Services; Health Care & Social Assistance; Public Administration; Other Services; Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; and Utilities.
Missouri’s September PMI decreased 1.7 points over the month to 54.8—and still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (52.5), Iowa (59.4), Kansas (56.9), Minnesota (60.0), Nebraska (55.1), North Dakota (69.0), Oklahoma (57.6) and South Dakota (50.4). Overall, the September Mid America Regional Index decreased to 57.5 from the previous month’s score of 61.1 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.