Business briefs: Hyundai production falls
June 10--Montgomery's Hyundai plant built fewer cars in May for the same reason that the…
Georgia (Jun 12, 2014) — June 10--Montgomery's Hyundai plant built fewer cars in May for the same reason that the company sold more: It was a month with five calendar weekends.
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With fewer production days than normal, the assembly line at Hyundai Motor Manufacturing Alabama rolled out 31,160 vehicles. That's nearly 1,000 fewer than April and 2,700 less than March.
Hyundai reported this week that May was its best U.S. sales month in company history. The Montgomery plant makes the company's two most popular models, the Elantra and Sonata sedans, which each topped 20,000 in sales last month.
The redesigned 2015 Sonata started arriving at dealers at the end of May.
The Montgomery plant will operate twice on Saturdays this month to help meet demand for the new car.
Manufacturing level falls
Alabama's manufacturing activity continued to grow in May but the Southeast saw its first decline in the last three months, according to the Southeast's Purchasing Managers Index report recently released by Kennesaw State University's Econometric Center.
The overall Southeast PMI decreased 3.4 points to 59.8, while the national PMI gained less than a point to 55.4. A PMI reading above 50 indicates that manufacturing activity is expanding, while a reading below 50 indicates it is contracting.
May's new orders and production remain at strong levels of 69.6 and 67.4, respectively, which should continue to support growth for manufacturing, said Econometric Center director Don Sabbarese.
"The April to May PMI drop should not be a concern since the drawdown in finished inventory of 7.6 points accounted for much of the drop in the PMI," Sabbarese said. "That decrease in finished inventory, given the strength for new orders and production, is a good indication that manufacturers will increase production to rebuild this lower level of inventory."
Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee are included in the Econometric Center's monthly regional report. Alabama, Florida and Mississippi recorded higher PMI readings for May.
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