Foreign Firms Sputter Slightly in Second Quarter

In keeping with a general slowdown in Georgia’s manufacturing sector, the state’s…

Georgia (Aug 16, 2013)

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In keeping with a general slowdown in Georgia’s manufacturing sector, the state’s foreign-owned businesses also experienced a slight drop in their activity during the second quarter following a first quarter uptick.

Don Sabbarese, director of the Econometric Center at Kennesaw State University, said in an Aug. 15 news release that the downturn was due to decreases in both employment and capital spending.

These factors offset increases in new orders and production, according to the Georgia International Business Index (GIBI), which is compiled by Dr. Sabbarese and published by the Michael J. Coles College of Business at Kennesaw State.

The index reported a 2.3-point drop in the second quarter, which followed a significant first-quarter jump of 8.9 points, the first increase since early 2012.

In the first quarter, the GIBI was 57.8, up from 49 in the fourth quarter 2012, indicating that manufacturing activity by foreign firms was expanding in the state. In the second quarter, however, there was a drop from 57.8 down to 55.5 points.


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