Purchasing Managers Index shows sharp rise
The Southeast Michigan economy experienced accelerated growth according to the May Southeast Michigan Purchasing Managers Index (PMI). The May index value is 61.2 representing a sharp rise from the April index of 55.3. Southeast Michigan PMI values have remained above 50 for 37 of the past 39 months. A PMI value above 50 generally suggests economic growth. “Sequestration does not seem to have impacted the Southeast Michigan economy to any measurable extent”, said Nitin Paranjpe, a supply chain faculty member at Wayne State University’s School of Business Administration who interpreted the results of the purchasing managers survey. “Production, new orders, and employment all increased sharply to climb into the 60’s. This should lead to a steady decline in the unemployment rate over the summer months. In fact, automobile manufacturers are curtailing their traditional summer slowdown and shutdowns and are instead ramping up production activity.” “The index numbers demonstrate relative stability between February and May, with a hint of economic improvement as the numbers continue to go up. However, the drop in commodity price index, which often signals a buildup in inventory, leaves us something to watch, and may be a factor in the coming months,” said Ken Doherty, a member of the Institute for Supply Management and assistant vice president for procurement and strategic sourcing at Wayne State University.