Southeast manufacturing activity improved in June after three consecutive months of decline, according to the Southeast’s Purchasing Managers Index report released Monday by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
June’s Southeast PMI of 55.1 is driven up by a sharp 9.3-point increase for new orders and a 8.9-point increase for production. This month’s increase moved the Southeast PMI closer to its six-month average of 56.5. While Southeast employment slipped 3 points to 57, it still remains at a level of sustainable growth.
According to Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University, June’s PMI numbers suggest manufacturing is beginning to recover from the first quarter economic drag on the overall economy.
“The National PMI also experienced improvement, although not as strong as June’s SE PMI, of a 0.7 point increase to 53.5,” Sabbarese said. “Early signs of improved retail sales may continue to contribute to improved manufacturing activity. The June National and Southeast readings offer some positive signs moving forward. ”
Six states — Mississippi, Alabama, Florida, Georgia, Louisiana and Tennessee — are included in the monthly regional report. Four of the six experienced higher PMI readings.
Mississippi’s PMI dropped to 47.8 from 52.1 in May. Four of six categories dropped. New orders fell to 43.4 from 56.9; production dropped to 39.9 from 47.6; employment rose to 50.1 from 49.9; delivery time improved to 51.8 from 50.5; inventories dropped from 55.8 to 53.7; commodity prices dropped from 67.9 to 52.2.