Economy grows at a slower rate for November, as Southeast Michigan Purchasing Managers Index drops to 58.3
DETROIT— The Southeast Michigan Purchasing Managers Index (PMI) for November is 58.3, down from 63.1 in October. Despite a slow-down in the rate of growth, the three-month average for the economy registered a robust 60.4. A PMI value above 50 generally suggests economic growth.
"Purchasing managers attribute the slow-down to a weakening in production and new orders as well as employment and commodity prices," said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business Administration, who interpreted this month’s results. "However, it’s important to note that even with November’s drop in the overall PMI, each sub-index is above 50, solidly confirming continued growth in our economy," Paranjpe said.
Nearly eighty percent of respondents’ report their expectations are for the economy to remain the same or improve over the coming months. Their comments about the economy included concern over the implementation of the Affordable Care Act, government debt, and the increasing costs of travel and energy.
November prices for low and high density polyethylene, plate steel and bar rod steel were up in price, while petroleum, oil and LNG 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.
The full report can be found here.