Georgia’s manufacturing lag continued in June
KENNESAW, Ga. (Aug 6, 2015) —
Georgia’s manufacturing activity was down for a fourth month in a row in June, with new orders and production adjusting from high levels, according to Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
The Georgia Purchasing Managers Index (PMI) dropped from 61.3 in June to 54.3 in July. A PMI reading above 50 shows manufacturing activity is expanding, while a reading below 50 indicates it is contracting.
“New orders is the major contributor to the volatility for the last three months,” said Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University. “Production adjustments are typically tied closely to changes in new orders. Employment on the other hand is more closely tied to longer-term expectations. This is consistent with June and July’s report that 42 percent of respondents expect production to increase in the next three to six months.”
Highlights from the June PMI:
New orders down 17.1 points to 55.8
Production down 9.5 points to 63.5
Employment up 3.4 points to 59.6 points
Supplier delivery down 10.3 points to 48.1
Finished inventory down 1.6 points
Commodity prices down 4.5 points to 53.8