According to the report, Georgia’s new orders have signaled a slowdown in December and January. The new orders in January were down 4.4 points below their six-month average while production was eight points lower than its six-month average. This drop in new orders led to a downward adjustment in production and employment, said Don Sabbarese, director of the Econometric Center and professor of economics at Kennesaw State.
“Ironically, 57 percent of Georgia’s PMI respondents expect their production for the next three to six months to increase,” Sabbarese said. “While their response to this question is not used to calculate the PMI, it does suggest that the PMI should improve in the near future.”
Other highlights from the January PMI include:
► New orders down 2 points to 45.2, 4.4 points below its six-month average.
► Production down 12.3 points to 40.5, 8 points below its six-month average.
► Employment down 3.6 points to 54.8, 0.4 of a point below its six-month average.
► Supplier delivery down 8.7 points to 52.4, 0.2 of a point below its six-month average.
► Finished inventory up 7.1 points to 57.1, 5.9 points above its six-month average.
► Commodity prices down 0.4 of a point to 52.4, 3.9 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; a reading below 50 indicates it is contracting.