Southeast manufacturing index stays ahead of national index by small margin
Index down slightly for June, but sector still experiencing slow growth
KENNESAW, Ga. (July 3, 2013) — Manufacturing activity in the Southeast dropped slightly for June, tightening the gap between the region and the national index, according to the Southeast Purchasing Managers Index (PMI) report released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
According to the report, the national index jumped nearly two points in June to 50.9, while the Southeast index fell slightly by 0.3 points to 52.9. The six Southeastern states were split with Georgia, Alabama, and Mississippi decreasing and Florida, Tennessee and Louisiana increasing.
“The increases in total new orders and production for the Southeast partially offset decreases in the other three components — employment, supplier delivery time and finished inventory,” said Don Sabbarese director of the Econometric Center at Kennesaw State. “This is the third consecutive month for decreasing inventories.”
Four of the six states — Florida, Georgia, Louisiana, Tennessee — recorded an index above 50, which is consistent with manufacturing growth. Florida recorded the highest index at 63.3 for the Southeastern states, and Mississippi recorded the lowest at 45.7.
Highlights of the May Southeast PMI include:
· New orders increased 5.5 points to 58.9 based on increases for Florida, Georgia, Tennessee, and Louisiana
· Production increased 1.2 points to 56.3 based on increases for all states except Alabama
· Employment decreased 3.9 points to 56.3 based on decreases for all states except Louisiana
· Supplier delivery time decreased 0.8 of a point to 50 based on decreases for all states except AlabamaFinished inventory decreased 3.8 points to 42.9 based on declines for all six states
· Commodity prices decreased 1.9 points to 45.5 based on price decreases for Florida, Georgia, and Tennessee.
The Southeast PMI reading is a composite of five variables — new orders, production, employment, supply deliveries and finished inventory. A sixth variable, commodity prices, is compiled by the Coles College’s Econometric Center but does not go into the PMI calculation.
For more information on the Southeast PMI or to talk with Sabbarese, call 770-423-6094.
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-- Tiffany Capuano