Missouri’s Purchasing Managers’ Index (PMI) for October was 53.8, a decrease of 10.1 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 October PMI® for manufacturing registered 58.7, a decrease of 2.1 points from the September reading of 60.8 percent. Economic activity in the manufacturing sector stayed above 50 in the expansionary range for the 101st consecutive month, according to the nation's supply executives in the latest Manufacturing ISM®, Report on Business®. New Orders (63.4) and Production (61.0) decreased by 1.2 points. Supplier Deliveries (61.4) decreased by 3.0 points while Inventories (48.0) decreased 4.5 points from September. Employment (59.8) decreased by 0.5 points from the prior month. According to the PMI® report, of the 18 manufacturing industries, 16 reported growth in October in the following order: Paper Products; Nonmetallic Mineral Products; Machinery; Transportation Equipment; Wood Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Plastics & Rubber Products; Textile Mills; Chemical Products; Computer & Electronic Products; Fabricated Metal Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; and Primary Metals.
The non-manufacturing survey index for October was 60.1, increasing over the month by 0.3 points and still in expansion territory. Business activity (62.2) increased by 0.9 points while New Orders (62.8) decreased by 0.2 points. Inventory (52.5) increased by 1.0 points in October. Supplier Deliveries (58.0) remained steady while Employment (57.5) increased 0.7 points. The 16 industries reporting growth in October— listed in order — are Agriculture, Forestry, Fishing & Hunting; Construction; Transportation & Warehousing; Mining; Real Estate, Rental & Leasing; Utilities; Other Services; Wholesale Trade; Management of Companies & Support Services; Retail Trade; Finance & Insurance; Health Care & Social Assistance; Public Administration; Information; Professional, Scientific & Technical Services; and Accommodation & Food Services.
Missouri’s October PMI decreased 10.1 points over the month to 53.8— but still well above the 50.0 percent expansion threshold. Other states in the survey were Arkansas (55.4), Iowa (55.0), Kansas (63.4), Minnesota (56.3), Nebraska (60.1), North Dakota (55.9), Oklahoma (63.0) and South Dakota (57.6). Overall, the October Mid America Regional Index increased to 58.8 from the previous month’s score of 58.2 percent. This is the 11th 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.