Southeast Manufacturing Reaches Highest Point Since 2012

by Kennesaw State University

Manufacturing activity in the Southeast increased for March, registering its highest reading since 2012, according to the Southeast’s Purchasing Managers Index (PMI) report released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business. The Southeast PMI increased 5.5 points to 61.5, while the National PMI increased 0.5 points to 53.7.

Six Southeastern states — Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee — are included in the Econometric Center’s monthly regional report. Five states — Alabama, Georgia, Florida, Mississippi and Tennessee — recorded higher PMIs. Alabama, Georgia, Mississippi and Tennessee recorded higher employment, which contributed 6.7 points to the PMI increase.

The March Southeast PMI increase moved the PMI to its highest reading since April 2012. New orders and production increases of 11.2 and 10.4 points, respectively, were up 21.2 and 17.5 points from January, according to Don Sabbarese, director of the Econometric Center at Kennesaw State.

“It’s not clear as to what degree this rise in new orders is due to a weather-related backlog of orders and therefore sustainable in the coming months,” Sabbarese said. “That said, it suggests that even if the PMI components slip in the near future, they should remain at a good level of growth.”

Highlights of the March Southeast PMI include:

  • New orders increased 11.2 points to 70.2, based on increases for Alabama, Georgia, Louisiana and Mississippi 
  • Production increased 10.4 points to 65.4, based on increases for Alabama, Florida and Georgia Employment increased 6.7 points to 58.7, based on increases for Alabama, Georgia and Mississippi 
  • Supplier delivery decreased 0.3 points to 56.7, based on decreases for Alabama, Florida and Georgia 
  • Finished inventory decreased 0.3 points to 56.7, based on decreases for Florida, Louisiana and Tennessee 
  • Commodity prices decreased 3.2 points to 54.8, based on decreases for Alabama, Florida 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.


More Local

Gray found guilty of rape

The verdict in is in, and Benjamin Gray was found guilty of rape. More details to come. Read More


Sexsomnia or rape? Verdict in jury’s hands

Closing arguments in the sleepwalking rape trial of Benjamin Gray concluded Friday. Coweta County Assistant District Attorney Herb Cranford ... Read More


118 Newnan High students tested for TB

More than a hundred tuberculosis exposure tests were administered at Newnan High School on Friday, as earlier in the week a NHS student was ... Read More


Senoia man arrested after fleeing from officer

A Senoia area man was arrested Tuesday and taken to the Coweta County Jail after allegedly leading a Coweta County sheriff's deputy on a hig ... Read More


UPDATE

Wreck victim in fair condition

James Hand, who was injured in a motor vehicle crash Thursday morning, was listed in fair condition Friday at Atlanta Medical Center. Hand w ... Read More

Prescribed burn smokes out Lake Redwine

A large fire that brought days of smoke and acrid smells to the Lake Redwine area was a prescribed burn that was done in accordance with cur ... Read More