Missouri’s Purchasing Managers’ Index (PMI) increased by 0.5 points in July. The state’s PMI score increased to 47.0 from 46.5 in June, 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 50 for July compared with June’s 50.2. The modest dip is about on par with expectations. Production, new orders and inventories all decreased over the month. Inventories was below the 50.0 level. The nation’s PMI for non-manufacturing came in slightly better than expected in July. The composite index rose to 49.5 from 48.2, but similar to the monthly ISM manufacturing survey, the details were somewhat weaker than the headline number. In particular, a decline in new orders and new export orders signals weaker activity in the non-manufacturing economy in the months ahead.
Missouri’s July score showed increases for the month in production (50.0) and new orders (47.6). Employment decreased to 30.2 from 33.8 in June. Other states in the survey include North Dakota (63.0), Arkansas (61.8), Oklahoma (59.3), South Dakota (57.2), Nebraska (50.8), Minnesota (50.3), Iowa (45.8), and Kansas (44.7).
Overall, the average for the Mid-America Region increased in July to 51.5 from 50.5 in June
Note: The national purchasing manager's indices are produced by
the Institute for Supply Management, formerly the Purchasing
Management Association.
