Georgia manufacturing bounces back in July

KENNESAW, Ga. (Aug 4, 2016) — State sees increases in production, employment

Georgia manufacturing rebounded from a recent slump and showed growth for the first time in three months, according to the Purchasing Managers Index (PMI) released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.

Georgia’s PMI increased 3.2 points to 52.5 in July — the first time since April that the index has been above 50, the minimum benchmark for manufacturing growth. The PMI of 52.5 reflects an increase in five of the six categories measured.

Increases in production and employment accounted for much of July’s uptick, according to the report. Production increased 6.5 points based on 4.6 percent more respondents reporting higher production for the month, while employment jumped 19 points as 30.8 percent more respondents reported higher figures.

Georgia’s PMI was nearly identical to the national index for July, which dipped by 0.6 to 52.6. Nationally, 11 of 18 manufacturing industries reported growth in July, including textile mills, miscellaneous manufacturing, chemical products, petroleum and coal products, and computer and electronic products.

Summary of highlights from Georgia’s July PMI:

  • New orders up 0.2 points to 46.9, 10.1 points below its six-month average
  • Production up 6.5 points to 53.1, 8.2 points below its six-month average
  • Employment up 19 points to 65.6, 7.9 points above its six-month average
  • Supplier delivery time down 10.2 points to 53.1, 1.8 points below its six-month average
  • Finished inventory up 0.4 points to 43.8, 7.6 points below its six-month average
  • Commodity price up 8.5 points to 71.9, 15.3 points above its six-month average

The Georgia PMI provides a snapshot of manufacturing in the state, just as the monthly PMI released by the Institute for Supply Management offers an outlook of national manufacturing activity. A PMI reading above 50 indicates that manufacturing activity is expanding, and below 50 indicates it is declining.


The Michael J. Coles College of Business at Kennesaw State University is the second-largest business school in Georgia, with more than 6,000 students. Coles offers 13 undergraduate and graduate degree programs, including a Doctor of Business Administration (DBA), and is accredited by the Association to Advance Collegiate Schools of Business (AACSB). U.S. News & World Report in its annual “Best Graduate Schools 2017” ranked the College’s part-time MBA program among the top 20 programs in the South.