Georgia manufacturing activity continues to operate at high level


New orders experience significant increase, while production and employment drop slightly KENNESAW…

Georgia (May 1, 2014)New orders experience significant increase, while production and employment drop slightly

KENNESAW, Ga.  (May 1, 2014) — Georgia manufacturing activity continued to improve in April, despite slight dips in production and employment, 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 April increased by 0.2 points to 62.7. The new orders component of the PMI jumped by 8.9 points, reaching its highest level reading since March 2013.

According to the report, the April PMI is 17.3 points above its six-month average. Nearly 50 percent of participants reported higher new orders, and 43 percent reported higher production.

“In this case, it’s still too early to determine how much of these new orders and production increases were delayed by weather and how much is related to new demand,” said Don Sabbarese, director of the Econometric Center and professor of economics at Kennesaw State. “April’s unbalanced changes suggest adjustments to earlier weather-related distortions, but it also demonstrates sustainable levels of strong growth.” 

Other highlights from the April PMI:

  • New orders up 8.9 points to 75, 17.3 points above its six-month average
  • Production down 1.9 points to 65.9, 10 points above its six-month average
  • Employment down 0.6 of a point to 63.6, 5.8 points above its six-month average
  • Supplier delivery up 4.2 points to 61.4, 3.6 points above its six-month average
  • Finished inventory down 9.4 points to 47.7, 4.7 points below its six-month average
  • Commodity prices up 8.3 points to 63.6, 10 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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