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 May:
Arkansas: Arkansas’ overall index fell to 58.4 last month from April’s 61.1. Components of the index were new orders at 57.6, production or sales at 59.8, delivery lead time at 51.0, inventories at 57.5 and employment at 66.3. “Arkansas is adding nondurable-goods manufacturing jobs at a healthy pace,” Goss said. “These gains are more than offsetting losses for durable-goods producers. I expect the state to add jobs and economic activity above the regional and national average for the rest of 2017,” he said.
Iowa: The state’s overall index dropped to 57.5 from 64.7 in April. Index components were new orders at 57.1, production or sales at 59.3, delivery lead time at 50.6, employment at 65.7 and inventories at 57.0. Durable-goods manufacturer, including transportation equipment manufacturers and metal producers, reduced employment, Goss said. But expansions - in sales and jobs - for nondurable-goods manufacturers more than offset declines for heavy manufacturers.
Kansas: The Kansas overall index declined to 53.9 from 56.4 in April. May’s index components were new orders at 53.1, production or sales at 55.1, delivery lead time at 47.0, employment at 61.1 and inventories at 53.0. Transportation equipment producers and farm equipment manufacturers continued to experience slow growth or declines, Goss said. “On the other hand, nondurable-goods producers, including food processors, are expanding economic activity and more than offsetting losses for durable-goods producers,” he said.
Minnesota: The state’s overall index slipped to a still strong 58.4 from April’s 61.2. Index components were new orders at 57.6, production or sales at 59.8, delivery lead time at 51.0, inventories at 57.5 and employment at 66.3. “Slight job gains for both durable- and nondurable-goods producers in the state supported May’s solid overall reading,” Goss said.
Missouri: The overall index for Missouri plummeted to 51.0 last month from 62.4 in April. Index components were new orders at 50.3, production or sales at 52.2, delivery lead time at 44.6, inventories at 50.2 and employment at 57.9. Economic growth slowed for Missouri manufacturers in May, Goss said.
Nebraska: The state’s overall index fell to 55.2 in May from 61.0 in April. Index components were new orders at 54.4, production or sales at 56.5, delivery lead time at 48.2, inventories at 54.3 and employment at 62.6. While metal manufacturers and machinery producers experienced slow growth or declines in May, Goss said, nondurable-goods manufacturers, including food processors, reported solid upturns in economic activity.
North Dakota: North Dakota’s overall index sank to 53.9 last month from 57.3 in April. Index components were new orders at 53.1, production or sales at 55.1, delivery lead time at 47.0, employment at 61.1 and inventories at 53.0. “Energy and machinery equipment manufacturers continue to shed jobs,” Goss said. “However, gains for nondurable-goods producers in the state more than offset durable-goods losses.”
Oklahoma: The state’s overall index remained above growth neutral for a fifth straight month, although it declined to 54.2 from 61.2 in April. Index components were new orders at 53.5, production or sales at 55.5, delivery lead time at 47.3, inventories at 53.4 and employment at 61.5. Durable-goods manufacturers, except for metal producers and machinery manufacturers, are expanding at a slow pace, Goss said. Nondurable-goods manufacturers, including food processors, are experiencing healthy growth.
South Dakota: The overall index for South Dakota stood at a regional high 61.7 last month but was down from April’s 68.8, also a regional high. Index components were new orders at 60.8, production or sales at 63.1, delivery lead time at 53.8, inventories at 60.7 and employment at 69.9. “Expansions among nondurable-goods manufacturers in the state more than compensated for slight losses for durable-goods producers,” Goss said.
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