Georgia manufacturing decline continued in October

  October marked the second month in a row of decline in the Peach State’s manufacturing…

Georgia (Nov 3, 2011) —  


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October marked the second month in a row of decline in the Peach State’s manufacturing sector, according to the Econometric Center at Kennesaw State University’s Coles College of Business.

Georgia’s Purchasing Managers Index (PMI) -- a reading of economic activity in the state’s manufacturing sector -- for October was 43.2, down 5.5 points from September.

A PMI reading above 50 shows manufacturing activity is expanding, while a reading below 50 shows it is contracting.

The PMI has continued to decline since June, only going up in August.

“What was once believed to be a soft spot appears to be more pervasive,” said Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business. “The decline in inventories signals that inventories are being adjusted to match the substantial reduction in new orders and production. Georgia’s relatively slower economic recovery may be responsible for these weaker manufacturing numbers.”

Other highlights of the October PMI:

  • New orders increased 3.4 points to 48.4
  • Production was down 3.1 points to 43.5
  • Employment dropped 3.2 points to 46.8
  • Supplier delivery time dipped 4.9 points to 48.4


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