Economy experiences sharp upswing for May according to Southeast Michigan Purchasing Managers Index
The Southeast Michigan Purchasing Managers Index (PMI) jumped to 60.0, from 53.6 in April. This is the first time since October 2013 that the PMI reached this level. A PMI value above 50 generally suggests economic growth.
"May was a good month for the Southeast Michigan economy and the six-month outlook is promising," said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business Administration, who interpreted this month’s results. "The PMI shot up to 60, bringing the three month average to 56.2 and it is joined by strong showings in both the Employment Index and Commodity Prices Index as well," Paranjpe said.
Nearly 85.7 percent of PMI respondents believe the economic outlook will remain positive, while less than 15 percent believe the economy will become less stable over the next six months. Comments from purchasing managers ranged from "Orders for our products (factory automation) have increased significantly in recent months. And our hiring of new employees has increased significantly as a result," to "Although the market continues its growth, we as a metals industry engineering firm have not seen much movement for the future, military spending is still down and they are buying minimum requirements."
May prices for air fares, IT products, office supplies and scientific instruments were up in price. No commodities were down in price.
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.
