Southeast manufacturing index up for the fifth month in a row
Southeast PMIincreases 5.9 points, says KSU economics professor KENNESAW, Ga. (March 7, 2011)…
Georgia (Mar 8, 2011) — Southeast PMIincreases 5.9 points, says KSU economics professor
KENNESAW, Ga. (March 7, 2011) — Manufacturing activity in the southeastern United States was up 5.9 points, according to the Econometric Center at Kennesaw State University’s Coles College of Business.
The Southeast Purchasing Managers Index (SPMI) — a reading of manufacturing activity in the six-state Southeast — for February was 64.8, marking five consecutive months of increase. The Southeast PMI encompasses Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee, corresponding with the territory served by the Sixth Federal Reserve District.
The Southeast PMI improved based on higher levels for all its underlying components. February New orders and Production are up 10.3 and 11.9 points. New Orders, Production, and Employment are 12.5, 13.2, and 8.9 points higher than their (September-February) six month averages respectively, said economist Don Sabbarese, director of the Econometric Center.
“The PMI’s continued increase and level for the past five months demonstrates a strong sustainable growth rate for southeast manufacturing,” Sabbarese said.
Highlights of the February Southeast PMI include:
- Manufacturing activity grew in four states: Georgia, Florida, Tennessee and Louisiana. Florida (66.0) reported the highest PMI.
- Georgiaexperienced the sharpest increase, 8.7 points. Louisiana has the lowest PMI reading, at 60.9
- New Orders and Production experienced the greatest increases, 10.3 and 11.9 points, to 70.8 and 70 respectively
- Employment increased 3.8 points to reach its highest point ever recorded, dating back to August 2006. Thirty-eight percent of employers reporting increased hiring.
The Southeast PMI reading is a composite of five variables — new orders, production, employment, supply deliveries and finished inventory. A sixth variable, commodity prices, is compiled by the Coles College’s Econometric Center but does not go into the PMI calculation.
For a full report of the February PMI, or to speak with professor Sabbarese, please call 770- 423-6094.
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