Economy cools as Southeast Michigan Purchasing Managers Index drops to 47.3
DETROIT— The Southeast Michigan Purchasing Managers Index (PMI) for February dipped to 47.3, down from 52.3 in January. A PMI value above 50 generally suggests economic growth. A PMI index value below 50 generally suggests economic slowing.
"Though the southeastern Michigan economy has slowed a bit, there’s no reason to believe that this is a long-term slowdown, at most it could be described as a temporary cooling of the economy," said Timothy Butler, associate professor of supply chain management at Wayne State’s School of Business Administration, who interpreted this month’s results. "The southeast Michigan economy has been consistently strong since coming out of the recession. We should not be too concerned about two or three months of poorer results during this time of year," Butler said.
PMI respondents seem to agree with Butler, as 80 percent believe the economy will likely maintain relative growth or improve over the next six months, while just 20 percent believe the economy will become less stable over the same period of time. Some expressed expectations that the European economy will continue rebounding, benefitting our economy as well.
February prices for plastic, gasoline, propane, diesel fuel, petro chemicals, acrylic, polycarbonate, brass, rubber, plate steel and aluminum are all up. Items down in price include nylon and resin.
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University’s School of Business Administration and the Institute for Supply Management – Southeast Michigan.
The full report can be found at http://www.ism-sem.org/resources/files/PMI-%20February%202014.pdf.
The Institute for Supply Management - Southeast Michigan serves its members as an affiliate of the Institute for Supply Management by providing superior opportunities for education, networking, and career enhancement as a means of advancing and promoting the leading edge practices and profession of purchasing and supply management. Visit their website at http://www.ism-sem.org.
Wayne State University is a premier urban research institution of higher education offering 370 academic programs through 13 schools and colleges to nearly 29,000 students. The School of Business Administration offers AACSB accredited programs at the bachelor, master and doctoral levels. Learn more at www.business.wayne.edu.