“Employment fell for the first time in three months after outperforming the national PMI employment numbers for the last two months,” said Don Sabbarese, director of the Econometric Center and professor of economics at Kennesaw State.
The Georgia PMI fell to 52.3 for November, while the National PMI increased 0.9 points to 57.3. Despite November’s slight drop, Georgia manufacturing activity continues to grow, but at a slower pace than national manufacturing, according to Sabbarese.
“Georgia’s 1.3-point PMI decrease breaks a two-month PMI improvement of 5.1 points, but its strength in new orders and production suggests Georgia manufacturing still remains on a solid growth path,” Sabbarese said. “November’s weak employment numbers may be influenced by seasonal conditions.”
Georgia new orders remained strong as 32 percent of respondents reporting higher new orders and 27 percent reporting higher production, according to Sabbarese. New orders for November is 2.7 points above its six-month average of 51.8.
This observation is drawn from a survey question that asked respondents about their anticipated production for the next three to six months. The percentage of manufacturers expecting an increase has dropped for the last four months.
Other highlights from the November PMI were:
● New orders remain at 54.5, 2.7 points above its six-month average;
● Production up 4.5 points to 54.5, 4.7 points above its six-month average.;
● Employment down 9.1 points to 50, 2.5 points below its six-month average;
● Supplier delivery down 2.3 points to 50, 1.5 points below its six-month average;
● Finished inventory remains at 52.3, 3.6 points above its six-month average; and
● Commodity prices down 15.9 points to 45.5, 9.2 points below its six-month average.
The Georgia PMI provides a snapshot of manufacturing activity in the state, just as the monthly PMI released by the Institute for Supply Management provides a picture of national manufacturing activity. A PMI reading above 50 indicates that manufacturing activity is expanding, while a reading below 50 indicates it is contracting.