Archive for Monday, March 2, 2015

Midwest economy: February glance at Kansas, Missouri

March 2, 2015

The Institute for Supply Management, formerly the Purchasing Management Association, began formally surveying its membership in 1931 to gauge business conditions.

The Creighton Economic Forecasting Group uses the same methodology as the national survey to consult supply managers and business leaders. Creighton University economics professor Ernie Goss oversees the report.

The overall index ranges between 0 and 100. Growth neutral is 50, and a figure greater than 50 indicates an expanding economy over the next three to six months.

Here are the state-by-state results for February:

Kansas: Kansas' overall index dropped to 52.7 in February from 53.8 in January. Components of the index were new orders at 35.9, production or sales at 56.2, delivery lead time at 56.2, employment at 54.6 and inventories at 51.7. Durable-goods producers, including agriculture machinery manufacturers and metal manufacturing, are slowly shedding jobs. "With recent pullbacks, compared to pre-recession levels, this heavy-manufacturing sector has lost more than 24,000 jobs," Goss said. Average weekly wages for all Kansas workers, according to the statistics bureau, have grown 3.6 percent over the past year.

Missouri: The February index rose to 56.8 last month from January's 56.1. Components of the index were new orders at 59.1, production or sales at 64.1, delivery lead time at 55.1, inventories at 54.5 and employment at 51.5. Missouri's durable-goods manufacturers are growing at a very healthy pace. Goss said. "However, even with this recent healthy growth, compared to pre-recession levels, this heavy-manufacturing sector has lost almost 32,000 jobs," he said. Average weekly wages for all Missouri workers have sunk by 1.8 percent over the past year, the statistics bureau said.

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