Index says Missouri remains economically strong

Much of the growth is attributed to strong scores in production, new orders and employment, according to a Missouri Department of Economic Development news release.

A score of 50 generally indicates an expanding economy, while a score below 50 forecasts a sluggish economy for the next three to six months. Missouri’s score has remained above the critical 50 mark for nearly three years and has been above 60 since February.

“The Purchasing Managers Index is one of several indicators we look at on a monthly basis and we are excited by our continued high scores,” said Kelvin Simmons, director of the Department of Economic Development. “The kinds of things measured by this index are closely related to our manufacturing sector,

which has shown stability and even growth for the past year.”

Missouri’s highest scores in the index were in production, 71.2, and new

orders, 66.7. The state ranked ahead of neighboring Kansas, Nebraska, Iowa, Oklahoma and Arkansas. In the mid-America region, only North Dakota, South Dakota and Minnesota had higher index scores than Missouri.

The PMI measures such factors as new orders, production, supplier delivery times, backlogs, inventories, prices, employment, import orders and exports. Economists consider the index a key indicator of economic conditions.

The Purchasing Managers’ Index is part of a monthly Mid-American Business Conditions Survey, conducted by Creighton University in Omaha, Neb.