Missouri’s Purchasing Managers’ Index (PMI) for August was 56.5, an increase of 0.1 points, but still well in expansion territory, according to the monthly Mid-America Business Conditions Survey, conducted by Creighton University, Omaha, NE. Over the past 12 months, Missouri's durable goods manufacturing sector has expanded by 3.1 percent.
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 August PMI® for manufacturing registered 61.3, increasing 3.2 points from the July reading of 58.1 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 112th consecutive month according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (65.1) increased by 4.9 points while Production (63.3) increased by 4.8 points. Supplier Deliveries (64.5) increased by 2.4 points while Inventories (55.4) increased 2.1 points from July. Employment (58.5) increased by 2.0 points from the prior month.
According to the PMI® report, of the 18 manufacturing industries, 16 reported growth in August, in the following order: Computer & Electronic Products; Apparel, Leather & Allied Products; Textile Mills; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Furniture & Related Products; Machinery; Nonmetallic Mineral Products; Transportation Equipment; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; and Printing & Related Support Activities.
The non-manufacturing survey index for August was 58.5, increasing over the month by 2.8 points and still in expansion territory. Business activity (60.7) increased by 2.8 points while New Orders (60.4) increased by 3.4 points. Inventory (53.5) remained steady in August for the second consecutive month. Supplier Deliveries (56.0) increased by 3.0 points while Employment (56.7) increased 0.6 points. The 16 non-manufacturing industries reported growth in August — listed in order — are: Construction; Transportation & Warehousing; Retail Trade; Educational Services; Other Services; Real Estate, Rental & Leasing; Public Administration; Management of Companies & Support Services; Wholesale Trade; Mining; Accommodation & Food Services; Health Care & Social Assistance; Finance & Insurance; Utilities; Professional, Scientific & Technical Services; and Information.
Missouri’s August PMI increased 0.1 points over the month to 56.5—and still above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (58.7), Iowa (59.2), Kansas (60.2), Minnesota (61.9), Nebraska (61.9), North Dakota (76.0), Oklahoma (60.4) and South Dakota (55.6). Overall, the July Mid America Regional Index increased to 61.1 from the previous month’s score of 57.0 percent.
Note: The national purchasing manager's indices are produced by the Institute for Supply Management, formerly the Purchasing Management Association.