Missouri’s Purchasing Managers’ Index (PMI) for February was 66.8, an increase of 13.1 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 February PMI® for manufacturing registered 57.7 an increase of 1.7 points from the January reading of 56.0 percent. New Orders (65.1) increased by 4.7 points while Production (62.9) showed an increase of 1.5 points. Supplier Deliveries (54.8) increased by 1.2 points while Inventories (51.5) increased 3.0 points from January. Employment (54.2) decreased by 1.9 points from the prior month. According to the PMI® report, 17 out of 18 manufacturing industries grew in February: Textile Mills; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Wood Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Petroleum & Coal Products; and Miscellaneous Manufacturing.
The non-manufacturing survey index for February was 57.6, increasing over the month by 1.1 points and still in expansion territory. Business activity (63.6) increased by 3.3 points while New Orders (61.2) increased by 2.6 points. Inventory (52.0) increased by 4.0 points in February. Supplier Deliveries (50.5) decreased by 2.0 points while Employment (55.2) increased 0.5 points. The 13 non-manufacturing industries reporting growth in February are: Utilities; Mining; Other Services; Management of Companies & Support Services; Transportation & Warehousing; Finance & Insurance; Professional, Scientific & Technical Services; Accommodation & Food Services; Educational Services; Public Administration; Health Care & Social Assistance; Wholesale Trade; and Construction.
Missouri’s February PMI increased 13.1 points over the month to 66.8—this is above the 50.0 percent expansion threshold and the highest index since 2004. Other states in the survey were Arkansas (58.9), Iowa (62.6), Kansas (61.5), Minnesota (54.3), Nebraska (55.4), North Dakota (66.8), Oklahoma (59.0) and South Dakota (62.4). Overall, the February Mid America Regional Index rose to 60.5 from the previous month’s score of 54.7 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.