Missouri’s Purchasing Managers’ Index (PMI) for December was 38.9, according to the monthly Mid-American 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 for the next three to six months.
The December PMI® for manufacturing registered 48.2, a decrease of 0.4 points from the November reading of 48.6. New Orders (49.2) and Production (49.8) saw slight increases of 0.3 and 0.6 points, respectively. Supplier Deliveries (50.3) retracted by 0.3 points while Inventories (43.5) grew 0.5 points from November. Employment (48.1) contracted 3.2 points from the prior month. According to the PMI report, 10 out of 18 manufacturing industries contracted in December, as was the case in November.
The non-manufacturing survey index for December was 55.3, down 0.6 points over the month but still in expansion territory. Business activity (58.7) gained 0.5 points while New Orders (58.2) and Employment (55.7) both posted gains of 0.7 points from November. Supplier Deliveries (48.5) declined by 4.5 points.
Missouri’s December PMI decreased to 38.9 from 41.9 the previous month. Other states in the survey were Arkansas (40.1), Iowa (41.2), Kansas (41.7), Minnesota (39.4), Nebraska (43.5), North Dakota (35.5), Oklahoma (35.5) and South Dakota (40.2). Overall, November’s Mid American Regional Index decreased to 39.6 from the previous month’s score of 40.7.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.