S.E. Michigan Purchasing Managers Index experiences a summer slow down
The Southeast Michigan Purchasing Managers Index (PMI) dropped nearly nine points from June to July, from 66.1 to 57.5. Despite the month-to-month decrease, the overall outlook for the Southeast Michigan economy it still strong. A PMI value above 50 generally suggests economic growth.
According to Nitin Paranjpe, the finance faculty member at Wayne State’s School of Business who interpreted this month’s results, the July numbers are likely due, at least in part, to the regional economy hitting the dog days of summer.
"This month’s numbers likely reflect a typical mid-summer slowdown in economic activity,” Paranjpe said, while also noting that the PMI’s 3-month average was still a very robust 63.3.
Survey participants appear to be optimistic about the business environment moving forward. More than 85 percent believe the economy will be either more stable or about the same over the next six months.
“A number of respondents anticipate their businesses growing in the near future,” said Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and an Institute for Supply Management board member. “The question is just exactly when it will happen.”
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University’s School of Business and the Institute for Supply Management - Southeast Michigan.
