Missouri’s Purchasing Managers’ Index (PMI) decreased by 0.3 point in October. The state’s PMI score dipped to 53.4 from September’s score of 53.7, 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 increased 3.1 points in October to 55.7. The index has increased in all but one month this year and is at its highest since April 2006. It is up 17 points over the past year and is above its third quarter average of 51.5. The details remain positive for future growth. Among the details, the standout in October was the employment index which increased by 6.9 points to 53.1. This is the first time the employment index has been above its expansionary threshold of 50 since July 2008 and is at its highest since 2006. The ISM nonmanufacturing index showed a slight decrease of 0.3 point to 50.6 in October from 50.9 in September. The new orders index increased to 55.6 from 54.2, and the business activity index rose to 55.2 from 55.1.
Missouri’s October score showed increases for the month in delivery lead time (53.7), employment (48.1), and inventories (45), but decreases in new orders (60.6) and production (60). Other states in the survey include Arkansas (42.6), Iowa (55.5), Kansas (50), Minnesota (55.9), Nebraska (51.6), North Dakota (53.9), Oklahoma (46.9), and South Dakota (55.5).
Overall, the average for the Mid-America Region decreased to 51.8 from 56.2 in September.
Note: The national purchasing manager's indices are produced by
the Institute for Supply Management, formerly the Purchasing
Management Association.
