KENNESAW - Manufacturing activity in Georgia decreased by 5.4 points in November on the Georgia Purchasing Managers Index after a solid month of growth, according to a monthly survey.

Economic activity in the state's manufacturing sector for November was 43.5. The decline was a result of a dip in new orders, employment and finished inventory, according to a report by the Econometric Center at Kennesaw State University's Coles College of Business, which compiles the state PMI.

The monthly report is an economic indicator drawn from a survey of manufacturers in Georgia. It measures commodity prices, new orders, production, employment, supplier delivery time and finished goods inventory.

Don Sabbarese, economics professor and director of the Econometric Center, said the latest numbers indicate that Georgia's manufacturing sector remains weak and volatile.

"Manufacturers have no confidence that their markets are on the rebound," Sabbarese said. "They can't get a firm handle on where demand is going and are reluctant to hire more workers."

However, Sabbarese said about 47.8 percent of survey respondents - up from 32.1 percent in October - expect their production to increase in the next three to six months, while only 26 percent expect it to decline.

Economists use the PMI to track manufacturing activity. A PMI reading above 50 indicates that manufacturing activity is expanding; a reading below 50 indicates it is contracting.

Other statistics from the November PMI include: Employment remains weak, with only 8.7 percent of survey respondents reporting an increase in hiring, while 26.1 percent are still laying off workers; 34.8 percent of respondents reported higher new orders in last month, but 39.1 percent reported lower orders; 34.8 percent of respondents reported higher production, the same percent as those who reported lower production; and commodity prices remain high at 63, which is 7.3 points above the six-month average, and no respondents reported lower prices.