Published Monday, October 01, 2012
From Morris News Service
ATLANTA — Activity at Georgia manufacturing plants picked up slightly in September, according to a report released Monday by Kennesaw State University.
KSU’s Econometric Center’s Purchasing Manager’s Index rose 1.6 points to 52.0, just above the national index of 51.5 which also jumped up two ticks. Generally, economists consider a reading above 50 as indicating growth in the overall economy.Managers who buy supplies for their factories complete the monthly survey which asks about various aspects of their business. More managers reported an increase in their orders for new business compared to the number who said orders were off.
“The Georgia PMI stopped its four-month decline based on the strength of an 8 point new-orders increase. Although new orders tends to be volatile, it may be a signal that the PMI decline has ended, but remains weak,” said Don Sabbarese, director of the Econometric Center.
More companies say they have a shrinking inventory of finished goods, but many also noted they have cut back production. Still, 20 percent of those answering the survey expect production to rise over the next three to six months, an increase from the 14 percent predicting it in August.
Yet, at the same time, the employment index also climbed by 1.9 points.
That hiring may not accompany inflation since managers reported they are paying less for the commodities they use, driving the commodity-price index down 3.9 points.