Michigan PMI shows economic expansion in September
The September 2016 reading of the Southeast Michigan Purchasing Managers Index (PMI) came in at 60.2, notching a score well above the 50-point score that signifies the lower boundary for economic growth. The PMI takes into account the production index, the new orders index, the employment index and commodity prices in its calculation of the monthly figure. In September, production, new orders, and employment were all greater than 50, while commodity prices were slightly less than 50. “The index has maintained a value of more than 50 since June 2014, an impressive 26-month streak of economic expansion for Southeast Michigan,” Tim Butler, associate professor of global supply chain management in Wayne State University’s Mike Ilitch School of Business, said. The PMI’s three-month average is currently sitting at 60.6 points, indicating a stable and slowly expanding economy. “Uncertainty is typical at this stage in the presidential election process,” Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and an Institute for Supply Management board member, said. “That said, 81.3 percent of respondents anticipate that the economy will remain steady or become more stable over the next six months. When the votes are tallied, a clearer picture of the future economy will emerge.”
