Missouri’s Purchasing Managers’ Index (PMI) for May was 69.6, an increase of 2.2 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 May PMI® for manufacturing registered 58.7, an increase of 1.4 points from the April reading of 57.3 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 109th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (63.7) increased by 2.5 points while Production (61.5) increased by 4.3 points. Supplier Deliveries (62.0) increased by 0.9 points while Inventories (50.2) decreased 2.7 points from April. Employment (56.3) increased by 2.1 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 16 reported growth in May, in the following order: Textile Mills; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Fabricated Metal Products; Furniture & Related Products; Machinery; Chemical Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Transportation Equipment; Paper Products; and Primary Metals.
The non-manufacturing survey index for May was 58.6, increasing over the month by 1.8 points and still well in expansion territory. Business activity (61.3) increased by 2.2 points while New Orders (60.5) increased by 0.5 points. Inventory (57.5) increased by 0.5 points in May. Supplier Deliveries (58.5) increased by 4.0 points while Employment (54.1) increased 0.5 points.
The 14 non-manufacturing industries reported growth in May — listed in order — are: Wholesale Trade; Mining; Real Estate, Rental & Leasing; Construction; Retail Trade; Management of Companies & Support Services; Professional, Scientific & Technical Services; Transportation & Warehousing; Public Administration; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Finance & Insurance; Utilities; and Other Services.
Missouri's May PMI increased 2.2 points over the month to 69.6—significantly above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (66.2), Iowa (62.5), Kansas (68.7), Minnesota (64.2), Nebraska (70.1), North Dakota (62.4), Oklahoma (68.5) and South Dakota (66.8). Overall, the May Mid America Regional Index rose to 67.3 from the previous month’s score of 64.5 percent, its highest level in 14 years.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.