KENNESAW, Ga. — Manufacturing activity in the Southeast increased in January, moving in the opposite direction of the nation’s manufacturing activity, according to the Southeast Purchasing Managers Index (PMI) report released by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business. The Southeast PMI increased 2.2 points to 50.6, while the National PMI decreased 5.2 points to 51.3.
“While the Southeast January PMI increase of 2.2 points moved the PMI to a level of growth, new orders and production still remain below 50,” said Don Sabbarese, director of the Econometric Center at Kennesaw State. “However, 62 percent of respondents expect higher future production in the next three to six months, which may sustain manufacturing growth in the near future.”
Six Southeastern states — Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee — are included in the Econometric Center’s monthly regional report. Three states — Alabama, Florida and Mississippi — recorded higher PMI readings. Alabama, Louisiana and Tennessee recorded higher new orders and production, which contributed to the 2.2-point increase.
Highlights of the January Southeast PMI include:
- New orders increased 6.1 points to 49 based on increases for Alabama, Louisiana and Tennessee
- Production increased 5.1 points to 47.9, based on increases for Alabama, Louisiana and Tennessee
- Employment increased 3.2 points to 55.2, based on increases for Alabama, Louisiana, Mississippi and Tennessee
- Supplier delivery decreased 4.1 points to 51, based on decreases for Alabama, Florida, Georgia and Louisiana
- Finished inventory increased 1.0 point to 50, based on increases for Georgia, Mississippi and Tennessee
- Commodity prices increased 5.4 points to 65.6, based on increases for Alabama, Florida, Louisiana and Mississippi
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 Coles College’s Econometric Center but does not go into the PMI calculation.