Midwest manufacturing rebounded in December, according to surveys of purchasing managers at companies in nine states that include Missouri and Kansas.
An economic index produced from the surveys climbed sharply to 53.1 compared with 46.5 in November. An index score above 50 indicates expansion in manufacturing activity. Below 50 suggests a contraction.
“This is the second straight increase in the overall index and points to an improving regional manufacturing economy. I expect this to generate even healthier growth for both manufacturing and non-manufacturing for the first half of 2017,” said Ernie Goss, the Creighton University economist who oversees the surveys.
In Creighton’s Missouri surveys of purchasing managers, the index for the state climbed to 57.1 from 55.1 in November. Its Kansas index was 51.1 compared with 44.4 in November.
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Meanwhile, surveys of purchasing managers nationwide produced a manufacturing index of 54.7, up from 53.2 in November, according to the Institute for Supply Management, which conducts the broader inquiry. One food, beverage and tobacco products maker said this in the national survey, “Moving into more inflationary environment, with lots of pressure to increase prices on a number of fronts.”
National surveys of credit managers in December similarly produced an index reading of 54.1, up from 52.9 in November, according to the National Association of Credit Management. Economist Chris Kuehl wrote in the association’s report that the elections have led to a favorable mood to go along with favorable readings.
“The possibility remains that concerns will mount, but for now the mood is upbeat and enthusiastic. Consumer confidence levels are at highs not seen in over a decade, and there is some pretty solid data coming from the credit managers’ index this month,” Kuehl said.