Manufacturing showing signs of new life

The Atlanta Journal-Constitution
By Michael E. Kanell
mkanell@ajc.com

Georgia manufacturing has veered encouragingly toward daylight, as a rising number of companies report increases in new orders and production.

The sector is still in losing territory, but a report on June sales showed hopeful turns in the components that tend to lead overall growth, according to a monthly survey of companies by Kennesaw State University.

Hiring was down, but not as much as in previous months.

Moreover, “employment remains ... very low relative to the level of new orders and production,” said Don Sabbarese, director of the Kennesaw State Econometrics Center. That means if demand for Georgia manufacturing continues to increase, hiring will have to catch up.

Right now, the index shows employment in manufacturing still shrinking, but the decline has slowed. In contrast, some of the other components actually climbed onto growth turf for the month.