Purchasing Managers Index slips in July, indicating possible local economic slowdown
The Southeast Michigan Purchasing Managers Index slipped in July to 54.6 from 60.3 in June. A score above 50 indicates an expanding local economy, and the index has been above that for 29 of the past 30 months. “The only individual score consistent with signs of a rebounding economy is the upward trend for employment,” Ken Doherty of the Institute for Supply Chain Management said in a news release, referring to one of the components of the overall index. Doherty is a member of the Southeast Michigan chapter of the institute and an assistant vice president for procurement and strategic sourcing at Wayne State University. “Overall, the PMI seems to be trending down to slower growth, which does not portend too well for future growth in southeastern Michigan,” said Nitin Paranjpe, an economist and supply chain faculty member at WSU. “For some time, our data were showing that Michigan’s economy was doing better than the national economy, but now we are beginning to see this downward trend. The general tone of comments from our survey respondents provides some preliminary evidence of a slowdown, with a focus on Europe, the upcoming presidential election and health care.”
