Economic confidence continues as Southeast Purchasing Managers Index reaches 56.8 in November
The Southeast Michigan Purchasing Managers Index (PMI) for November is 56.8, up from 54.7 in October. Over the last five months the PMI has finished near or above 55. A PMI value above 50 generally suggests economic growth. Increases in several key indices contributed to the strong finish.
"In November, the Production Index rose to 55.9 from a low of 40 in October and the Employment Index grew as well, from 63.3 to 64.7," said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business, who interpreted this month’s results. "With regard to the Employment Index, we can see that Michigan’s labor market is finally enjoying a prolonged rebound from the Great Recession supported, in part, by strong automobile sales for the month."
Demonstrating tremendous confidence, 100 percent of the purchasing manager’s responding to this month’s survey indicated that they expect Southeast Michigan economy will remain stable or become more stable over the next six months.
In November, respondents reported natural gas, resins, airlines, and stainless steel were up in price, while crude oil was down in price.
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.
The full PMI report for November can be found at http://www.ism-sem.org/resources/files/Report-on-Business-November-2014.pdf