Manufacturing activity in Southeast climbs for second consecutive month

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Strong gains in new orders, production and supplier delivery time impact region  KENNESAW, Ga…

Georgia (Dec 4, 2013)Strong gains in new orders, production and supplier delivery time impact region 

KENNESAW, Ga.  (Dec. 4, 2013) — Manufacturing activity continued to climb in the Southeast, narrowing the gap between the region and the nation’s manufacturing activity, according to the Southeast’s Purchasing Managers Index (PMI) report released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.

According to the report, the Southeast PMI rose 1.8 points for November based on the strength of improved new orders, production and supplier delivery time. The Southeast PMI is 52.2, while the National PMI increased 0.9 points to 57.3.

The increase for the Southeast was attributed to higher PMI readings for Florida, Mississippi and Tennessee, with increases in new orders, production and supplier delivery time accounting for the higher readings, explained Don Sabbarese, director of the Econometric Center at Kennesaw State.

Six Southeastern states — Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee — are included in the Econometric Center’s monthly regional report.

Highlights of the November Southeast PMI include: 

·         New orders increased 3.1 points to 55.1, based on increases for Alabama, Mississippi and Tennessee

·         Production increased 4.1 points to 55.1, based on increases for  Florida, Georgia and Mississippi

·         Employment decreased 0.9 points to 52, based on decreases for  Georgia and Tennessee

·         Supplier delivery increased 4.0 points to 53.1, based on increases for Florida, Mississippi and  Tennessee

·         Finished inventory decreased 1.1 points to 45.9, based on decreases for Alabama and Florida

·         Commodity prices decreased 8.8 points to 50, based on price decreases for Georgia, Louisiana,  Mississippi and Tennessee

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 Econometric Center but does not go into the PMI calculation.

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