Georgia PMI down again in September

Atlanta Business Chronicle

Manufacturing activity in Georgia fell for the second month in a row in September, hurt by a decline in new orders and production, according to the Econometric Center at Kennesaw State University’s Michael J. Coles College of Business.

Georgia’s Purchasing Managers Index (PMI) -- a reading of economic activity in the state’s manufacturing sector -- for September was 44.6, down 0.8 of a point from August.

The Georgia PMI reading is a composite of five variables -- new orders, production, employment, supply deliveries and finished inventory. A PMI reading above 50 shows manufacturing activity is expanding. A reading below 50 means the manufacturing industry is contracting.

The latest numbers show the Peach State’s manufacturing sector continues to struggle as demand remains soft. But employment reported solid gains -- reaching 50 points, an increase of 6.3 points -- for the first time in 2009. Some 15.4 percent of survey respondents did some hiring, up from 0 percent in June.

“The rise in employment is a bright spot in this month’s manufacturing report,” said Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business, in a statement. “The improved employment picture suggests respondents may feel better about the near future, as opposed to current conditions.”