Missouri’s Purchasing Managers’ Index (PMI) for October was 41.9, 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 ISM national manufacturing index decreased in November to 48.6 from 50.1 in the previous month. The national index has now dropped below the neutral threshold of 50 for the first time since May of 2013. The following indices decreased: New Orders (-4.0%), Production (-3.7%), Inventories (-3.5%), Customer Inventories (-.5%), Prices (-3.5%). The index indicators showing an increase were Employment (+3.7), Supplier Deliveries (+.2%), Backlog of Orders (+.5%) and Imports (+2%). This data indicates that the Manufacturing Sector is moving from a period of growth to a period of contracting.
Missouri’s November PMI decreased to 41.9 from 50.1 the previous month. Other states in the survey were Arkansas (42.1), Iowa (42.3), Kansas (42.6), Minnesota (41.1), Nebraska (43.6), North Dakota (36.9), Oklahoma (37.5) and South Dakota (39.6). Overall, November’s Mid American Regional Index decreased to 41.9 from the previous month’s score of 47.7.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.