Southeast Michigan purchasing index tumbles in November
The Southeast Michigan Purchasing Managers Index took a tumble of more than 10 points in November, dropping to 57 after hitting an eight-month high of 67.2 in October. A value above 50 indicates an expanding economy. "This month's drop may be a result of post-election nervousness in the marketplace, but the value of 57.0 is still a strong showing of economic vitality," said Tim Butler, associate professor of global supply chain management in Wayne State University's Mike Ilitch School of Business, in a news release. The good news is that fewer respondents — about 20 percent compared to last month's 31 percent — predict that the economy will become less stable over the next six months. There were three steep drops in the subindexes that make up the index — new orders fell from 70.6 to 58.3; production dropped from 73.5 to 58.3; and employment fell from 75.0 to 62.5. The index is a partnership between the school of business and the Institute for Supply Management–Southeast Michigan.