S.E. Michigan Purchasing Managers Index closes out strong year
The Southeast Michigan Purchasing Managers Index (PMI) wrapped up 2015 where it spent all of 2015: at or above the magic value of 50. The PMI for December was 54.8, with a 3-month average of 56.8. A PMI value above 50 generally suggests an expanding economy.
The December index marks 18 consecutive months at or above a value of 50.0. The PMI reached its high mark for the year in May, at 66.4. The last value below 50.0 came in June 2014, at 47.1.
"Despite a variety of global concerns that have popped up here in there over the last year and a half, Southeast Michigan purchasing managers have remained pretty bullish about the regional economy," said Tim Butler, an associate professor of global supply chain management at Wayne State University’s Mike Ilitch School of Business, who interpreted this month’s results.
Roughly 82 percent of December respondents indicated that they believe the regional economy will become more stable, or remain about the same, over the next six months, while 17.6 percent anticipate that the economy will become less stable.
While the regional economy remains strong, current events in Europe and elsewhere have some respondents concerned about future stability.
"While our local economy isn’t immune from global uncertainty, I would certainly say we are entering 2016 in pretty good shape," said Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and an Institute for Supply Management board member. "I’m hoping for much more of the same in the new year."
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University’s Mike Ilitch School of Business and the Institute for Supply Management - Southeast Michigan.