Southeast manufacturing up slightly in December
Index still shows signs of weakness but purchasing managers a bit more optimistic
for near future…
(Jan 9, 2013) — Index still shows signs of weakness but purchasing managers a bit more optimistic
for near future growth
KENNESAW, Ga. (January 8, 2013) — The southeast manufacturing PMI was up slightly in December -- 46.4 up from 46.2
in November, according to the Econometric Center at Kennesaw State University’s Michael
J. Coles College of Business.
However, the slight uptick was still the third consecutive month that the reading
was below fifty. A reading below 50 indicates manufacturing continues to contract
in the southeast.
“Georgia, Tennessee, and Mississippi manufacturing continued to contract with readings
of 45, 44, and 42, respectively. Only Florida and Louisiana expanded with readings
of 55.8 and 58,” said economist Don Sabbarese, director of the Econometric Center.
“Alabama remains stable at 50.”
Despite the 46.4 PMI, the purchasing managers surveyed are more optimistic than they
were last month as 47% expect production to increase in the next three to six months
versus 31% for November.
According to the report, the Southeast PMI remains 4.3 points below the National PMI
of 50.7, which increased 1.2 points in December.
Highlights of the December Southeast PMI include:
· New orders decreased 3.7 points based on decreases for FL, GA, MS, and TN
· Production decreased 2.7 points based on decreases for Florida, Georgia, Mississippi,
· Louisiana recorded the lowest PMI, 42.1points
· Finished Inventory increased 8.5 points based on increases for all states,
but one, Florida
· Employment increased 0.2 of a point based on increases for Alabama, Georgia,
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.
For a full report of the November PMI, or to speak with professor Sabbarese, please
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