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Purpose of Survey
The Purchasing Management Index (PMI) is the primary component of the Economic Conditions website. Indices are reported for the overall economy, new orders, production, inventories, employment, delivery lead time, prices and confidence. The overall PMI is a composite index based on new orders, production, delivery lead time, inventories, and employment. An index above 50.0% indicates expansion while an index below 50.0% indicates contraction.
The indices are calculated from surveys of purchasing managers in the Mid-American and Mountain regions. The Mid-American region includes the states of Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota. The Mountain region includes the states of Colorado, Utah, and Wyoming.
The PMI has been used by economists and government officials to forecast the future state of the economy. It provides an early indication of where the economy is headed in the next three to six months.
On the first business day of every month, the Survey on Economic Conditions for Business in the Mid-American and Mountain States is released by Creighton University, Omaha, NE. Dr. Ernest Goss of Creighton University uses the same methodology used for the NAPM Report on Business which is released every month by the National Association of Purchasing Management (NAPM). The National Association of Purchasing Management began in 1931 to formally survey its membership to gauge business conditions.
The overall index ranges between 0 percent and 100 percent, and an index number greater than 50 percent indicates an expansionary economy, and an index under 50 percent forecasts a sluggish economy, for the next three to six months.
The states included in the Mid-American states are: Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
The states included in the Mountain States are: Colorado, Utah, Wyoming.