Missouri’s Purchasing Managers’ Index (PMI) increased by 0.9 points in September. The state’s PMI score increased to 53.6 from 52.7 in August, 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 fell 6.4 points to 43.5 for September. The larger than expected decline puts the ISM index at its lowest level since 2001. Overall, the September ISM index shows a contraction in manufacturing and moderating inflationary pressures. Production, new orders and inventories all decreased over the month. Inventories was below the 50.0 level. The nation’s PMI for non-manufacturing fell slightly to 50.2 in September from 50.6 the previous month. Since its drop to 44.6 in January, the ISM nonmanufacturing composite index has moved in a narrow band around 50, signaling slow expansion in the nonmanufacturing sector. A drop in the employment index, now in the mid-40s, was also observed.
Missouri’s September score showed increases for the month in new orders (56.7), employment (50.5) and a slight decrease in production to (55.3) from (55.7) in August. Other states in the survey include South Dakota (65.8), North Dakota (63.9), Arkansas (60.7), Kansas (58.2), Oklahoma (57.1), Nebraska (49.1), Minnesota (43.4) and Iowa (35.7).
Overall, the average for the Mid-America Region decreased in September to 49.6 from 51.4 in August.
Note: The national purchasing manager's indices are produced by
the Institute for Supply Management, formerly the Purchasing
Management Association.
