Georgia manufacturing index up in September
Georgia manufacturing index up in September PMI, up 1.6 points, rises for first time in five…
Georgia (Oct 1, 2012) — Georgia manufacturing index up in September
PMI, up 1.6 points, rises for first time in five months
KENNESAW, Ga. (Oct. 1, 2012) — Manufacturing activity in Georgia was up in September after four months of decline, accordingto the Econometric Center at Kennesaw State University’s Michael J. Coles College of Business.
Georgia’s Purchasing Managers Index (PMI) — a reading of economic activity in the state’s manufacturing sector — was up 1.6 points in September, to 52, with new orders, employment and supplier delivery time accounting for the increase. New orders were up 8 points, to 58; employment was up 1.9 points, to 50; and supplier delivery time was up 11.6 points, to 56. Georgia’s PMI is 0.5 of a point higher than the national PMI reading of 51.5.
“The solid growth in new orders may be signaling that the PMI’s four-month slide may have run its course,” said Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business. “But the increase over the past month is insufficient as proof of that. We need to see where the PMI is headed as the year comes to an end.”
Other highlights of the September PMI include:
· Production was down 5.6 points, to 50
· Finished inventory was down 7.7 points, to 46
· Commodity prices were down 3.9 points, to 48
The Georgia PMI provides a snapshot of manufacturing activity in the state, just as the monthly PMI released by the Institute for Supply Management provides a picture of national manufacturing activity. A PMI reading above 50 indicates that manufacturing activity is expanding; a reading below 50 indicates it is contracting.
The Georgia 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.
The PMI, compiled from a monthly survey of manufacturers, is the earliest indicator of market conditions in the sector. Since manufacturing, which accounts for 11 percent of GDP, is sensitive to changes in the economy, it can also reveal changing macroeconomic trends.
The PMI’s value is in its timeliness and sensitivity to variables such as interest rates, global markets and other economic changes. The Georgia PMI provides valuable data used by institutions such as the Federal Reserve Bank of Atlanta to assist in their analysis of current economic conditions, along with many other data sources, to get a picture of economic activity.
For a full report of the September PMI, or to speak with professor Sabbarese, please call 770-423-6094.
A leader in innovative teaching and learning, Kennesaw State University offers undergraduate, graduate and doctoral degrees to its nearly 43,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the country and the world. 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. For more information, visit kennesaw.edu.