Missouri’s Purchasing Managers’ Index (PMI) for December was 55.3, a decrease of 3.9 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 December PMI® for manufacturing registered 59.7 an increase of 1.5 points from the November reading of 58.2 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 103rd consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (69.4) increased by 5.4 points while Production (65.8) increased by 1.9 points. Supplier Deliveries (57.9) increased by 1.4 points while Inventories (48.5) increased 1.5 points from November. Employment (57.0) decreased by 2.7 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries 16 reported growth in December in the following order: Machinery; Computer & Electronic Products; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Furniture & Related Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; and Electrical Equipment, Appliances & Components.
The non-manufacturing survey index for December was 55.9, decreasing over the month by 1.5 points but still in expansion territory. Business activity (57.3) decreased by 4.1 points while New Orders (54.3) decreased by 4.4 points. Inventory (53.5) decreased by 1.0 points in December. Supplier Deliveries (55.5) increased by 1.5 points while Employment (56.3) increased 1.0 points. The 14 industries reporting growth in November— listed in order — are Retail Trade; Utilities; Arts, Entertainment & Recreation; Other Services; Health Care & Social Assistance; Accommodation & Food Services; Finance & Insurance; Real Estate, Rental & Leasing; Transportation & Warehousing; Mining; Construction; Wholesale Trade; Public Administration; and Professional, Scientific & Technical Services.
Missouri’s November PMI decreased 3.9 points over the month to 55.3— and still well above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (56.8), Iowa (54.3), Kansas (62.0), Minnesota (56.8), Nebraska (57.6), North Dakota (55.1), Oklahoma (59.3) and South Dakota (58.2). Overall, the December Mid America Regional Index increased to 59.0 from the previous month’s score of 57.2 percent. This is the 13th straight month the Mid America Regional Index has remained above growth neutral, continuing to point to growth for the region over the next three to six months.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.