Missouri’s Purchasing Managers’ Index (PMI) for July was 56.4, a decrease of 6.2 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 July PMI® for manufacturing registered 58.1, decreasing 2.1 points from the June reading of 60.2 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 111th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (60.2) decreased by 3.3 points while Production (58.5) decreased by 3.8 points. Supplier Deliveries (62.1) decreased by 6.1 points while Inventories (53.3) increased 2.5 points from June. Employment (56.5) increased by 0.5 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 17 reported growth in July, in the following order: Textile Mills, Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Computer & Electronic Products; Petroleum & Coal Products; Paper Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Machinery; Plastics & Rubber Products; Miscellaneous Manufacturing; Fabricated Metal Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Chemical Products; Wood Products; and Transportation Equipment.
The non-manufacturing survey index for July was 55.7, decreasing over the month by 3.4 points but still in expansion territory. Business activity (56.5) decreased by 7.4 points while New Orders (57.0) decreased by 6.2 points. Inventory (53.5) remained steady in July. Supplier Deliveries (53.0) decreased by 2.5 points while Employment (56.1) increased 2.5 points. The 16 non-manufacturing industries reported growth in July — listed in order — are: Mining; Public Administration; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Other Services; Construction; Real Estate, Rental & Leasing; Transportation & Warehousing; Finance & Insurance; Retail Trade; Wholesale Trade; Arts, Entertainment & Recreation; Information; Utilities; Health Care & Social Assistance; and Management of Companies & Support Services.
Missouri’s July PMI decreased 6.2 points over the month to 56.4—but still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (56.7), Iowa (55.9), Kansas (60.5), Minnesota (55.8), Nebraska (61.0), North Dakota (69.6), Oklahoma (60.6) and South Dakota (54.3). Overall, the July Mid America Regional Index declined to 57.0 from the previous month’s score of 61.8 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.