New orders up in Georgia factories, but overall picture very weak

Georgia’s manufacturing tilted tentatively toward growth in January as more companies…

Georgia (Feb 2, 2010)

Georgia’s manufacturing tilted tentatively toward growth in January as more companies reported higher new orders, according to a survey released Monday.
 
However, the recovery here remains even more sluggish than manufacturing nationally – and those numbers are not robust.
Still, more than one in 10 respondents in Georgia said in January that business had picked up from December, according to the monthly survey by Kennesaw State University Econometric Center.
 
KSU’s index for overall production was better too, ticking up 0.8 of a point from the month before to 44.7. That sub-50 level implies a continued shrinkage of the sector; it is also far below the current national level of 66.
 
“This doesn't speak well for manufacturing’s rebound in Georgia,” said Don Sabbarese, director of the center.
 
With overall production anemic, the picture on jobs worsened slightly in January. About 5 percent fewer companies reported increased payrolls than in December.
 
Manufacturing has been shedding jobs steadily for a decade, but it still accounts for about 10 percent of Georgia's workforce. Those jobs are pegged to production: If demand continues to rise, even modestly, it would likely mean more employment.
 
So if there is hope, it is in the increase of new orders in January after two consecutive months when they dropped, Sabbarese said.
“This is the most important improvement in January.”

Publication

Link To Article

http://www.ajc.com/business/new-orders-up-in-288403.html

 

A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its approximately 41,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the third-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 92 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status, and one of the 50 largest public institutions in the country. For more information, visit kennesaw.edu

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