Manufacturing activity growth emerging in Missouri, Kansas

For a ninth straight month, the Creighton University Mid-America Business Conditions Index, covering the nine-state region including Missouri and Kansas, moved into growth territory.       

The Business Conditions Index, which ranges between 0 and 100, climbed to a very strong 69.6 from 67.3 in January. Creighton’s regional manufacturing activity gauge is surging, restrained only by supply and labor constraints.

From the February survey, eight of 10 manufacturing supply managers reported that bottlenecks in receiving raw materials and supplies from vendors was curtailing what would be even stronger growth.

The Kansas Business Conditions Index for February slipped to 61.6 from 62.0 in January. Components of the leading economic indicator from the monthly survey of supply managers were: new orders at 68.7, production or sales at 74.2, delivery lead time at 67.0, employment at 60.8, and inventories at 37.4.

“Since July of last year, both durable and nondurable goods manufacturers in the state have expanded at a slow pace.  According to U.S. Bureau of Labor Statistics data, manufacturing wages for production workers in the state have expanded by weak 0.6% since the onset of COVID-19,” Ernie Goss, director of Creighton University’s Economic Forecasting Group and Regional Economics Chair in the Heider College of Business, said.

The February Business Conditions Index for Missouri rose to 64.2 from 62.5 in January.  Components of the overall index from the survey of supply managers for February were: new orders at 77.3, production or sales at 76.4, delivery lead time at 67.5, inventories at 38.8, and employment at 61.1.

“Since July of last year, both durable and nondurable goods manufacturers in the state have expanded at an anemic pace. According to U.S. Bureau of Labor Statistics data, manufacturing wages for production workers in Missouri have expanded by a strong 6.1% since the onset of COVID-19,” Goss said.