Missouri’s Purchasing Managers’ Index (PMI) for January was 53.7, a decrease of 3.4 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 January PMI® for manufacturing registered 56.0 an increase of 1.5 points from the December reading of 54.5 percent. New Orders (60.4) increased by 0.1 points while Production (61.4) showed an increase of 2.0 points. Supplier Deliveries (53.6) increased by 0.6 points while Inventories (48.5) increased 1.5 points from December. Employment (56.1) increased by 3.3 points from the prior month. According to the PMI® report,12 out of 18 manufacturing industries reported growth in January: Plastics & Rubber Products; Miscellaneous Manufacturing; Apparel, Leather & Allied Products; Paper Products; Chemical Products; Transportation Equipment; Food, Beverage & Tobacco Products; Machinery; Petroleum & Coal Products; Primary Metals; Fabricated Metal Products; and Computer & Electronic Products.
The non-manufacturing survey index for January was 56.5, declining slightly over the month but still in expansion territory. Business activity (60.3) decreased by 0.6 points while New Orders (58.6) decreased by 2.1 points. Inventory (48.0) decreased by 4.0 points in January. Supplier Deliveries (52.5) increased by 0.5 points while Employment (54.7) increased 2.0 points. The 12 non-manufacturing industries reporting growth in January are: Mining; Other Services; Utilities; Health Care & Social Assistance; Finance & Insurance; Public Administration; Accommodation & Food Services; Retail Trade; Construction; Wholesale Trade; Professional, Scientific & Technical Services; and Management of Companies & Support Services.
Missouri’s January PMI decreased 3.4 points over the month to 53.7—this is above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (55.3), Iowa (51.8), Kansas (53.2), Minnesota (54.7), Nebraska (56.9), North Dakota (49.7), Oklahoma (52.3) and South Dakota (57.2). Overall, the January Mid America Regional Index rose to 54.7 from the previous month’s score of 53.1 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.