The local economy is experiencing steady, health growth, according to the
which jumped eight points in February to a four-month high of 63.5.
Index values above 50 generally represent an expanding economy. February marks the 13th straight month of expansion, according to the monthly survey of purchasing managers compiled by the Wayne State University School of Business Administration and the Southeast Michigan chapter of the Institute for Supply Management.
The Production Index increased by over 10 points in February to 68.2, indicating that more producers are expanding their output at an increasing rate.
"Like the composite PMI, the Production Index also has expanded for 13 consecutive months," said Timothy Butler, associate professor of global supply chain management at Wayne State's business school, who analyzed the survey results. "This is a strong positive signal for the Southeast Michigan economy."
Survey results also show that more businesses are making new orders. The New Orders Index increased from 56.3 in January to 65.2 in February. Employment continues to show expansion as well, with a February index of 60.6 compared to the January index of 54.7.
Raw Material Inventories were up sharply and finished goods inventories were up modestly in February compared to January. Butler said that an overwhelming number of purchasing agents see prices on the rise, signaling a potentially inflationary environment.
Overall, purchasing managers are optimistic about the near future. Almost half of the respondents indicated that they believed that the economy would become more stable in the next six months and less than 10 percent believed that the economy would become less stable.