Missouri’s Purchasing Managers’ Index (PMI) increased by 5.7 points in August. The state’s PMI score increased to 52.7 from 47.0 in July, 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 national PMI for manufacturing industries inched slightly lower to 49.9 for August compared with July’s 50.0. The August report was on par with expectations. Production decreased by 0.8 while new orders and inventories all increased over the month. Inventories were below the 50.0 level. The nation’s PMI for non-manufacturing came in slightly better than expected in August. The composite index rose to 50.6 from 49.5. But similar to the monthly ISM manufacturing survey, an increase in the customer inventories index indicates a decline in demand may be possible in the near future. More importantly, a drop in the employment index, now in the mid-40s, could indicate further declines in the labor market.
Missouri’s August score showed increases for the month in production (55.7), new orders (55.8) and employment (42.9). Other states in the survey include Arkansas (67.2), North Dakota (63.9), South Dakota (61.9), Kansas (56.8), Oklahoma (54.1), Nebraska (51.2), Minnesota (44.6) and Iowa (40.8).
Overall, the average for the Mid-America Region decreased in August to 51.4 from 51.5 in July.
Note: The national purchasing manager's indices are produced by
the Institute for Supply Management, formerly the Purchasing
Management Association.
