Georgia manufacturing activity registers its strongest increase in six months

Sabbarese, Don.jpg

Jump in Georgia manufacturing activity narrows gap with national index KENNESAW, Ga.  (Nov. 1…

Georgia (Nov 1, 2013)Jump in Georgia manufacturing activity narrows gap with national index

KENNESAW, Ga.  (Nov. 1, 2013) — Georgia’s manufacturing activity for October experienced its strongest increase since March 2013, according to the Purchasing Managers Index (PMI) released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business. The Georgia PMI for October increased by 4.5 points to 53.6, while the National PMI for October was 56.4.

An 11.1-point gain in new orders led to the positive overall gain in Georgia’s PMI, according to Don Sabbarese, director of the Econometric Center and professor of economics at Kennesaw State. New orders for October was 2.1 points above its six-month average of 52.5.

In the last two months, Georgia’s PMI has increased by more than 5 points over that period, which has narrowed the gap with the National PMI, Sabbarese explained. While Georgia’s new orders and production remain below the national index readings, Georgia’s employment was 5.9 points higher than the national index.

“Georgia’s two-month PMI improvement is good news for Georgia manufacturing,” Sabbarese said.  “Less than half of all respondents anticipate lower future production for the next three to six months, which somewhat diminishes future expectations. The government shutdown and no long-term solution are probably contributing to this pessimism.”

This observation is drawn from a survey question that asked respondents about their anticipated production for the next three to six months. The percentage of manufacturers expecting an increase has dropped for the last four months, he added.

Other highlights from the October PMI:

·         New orders up 11.1 points to 54.5, 2.1 points above its six-month average

·         Production up 2.2 points 50, 0.2 of a point above its six-month average

·         Employment up 0.4 points to 59.1, 5.9 points above its six-month average

·         Supplier delivery up 0.1 points to 52.3, 0.4 of a point above its six-month average

·         Finished inventory up 8.8 points to 52.3, 4.0 points below its six-month average

·         Commodity prices down 1.7 points to 61.4, 6.3 points above its six-month average

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.

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Kennesaw State University is the third-largest university in Georgia, offering 90 graduate and undergraduate degrees, including doctorates in education, business and nursing and a Ph.D. in international conflict management. A member of the University System of Georgia, Kennesaw State is a comprehensive, residential institution with a growing student population of 24,600 from 130 countries.



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