SE Michigan Purchasing Managers Index drops after decrease in year-end orders
The Southeast Michigan Purchasing Managers Index took a big dip in December, falling from 58.3 in November to 50.6. A level above 50 indicates economic growth. The average over the past three months is 57.3. "The PMI dropped in December primarily due to a decrease in new orders and production at year's end," Timothy Butler, an associate professor of supply chain management at Wayne State University's School of Business Administration, said in a news release. "It is important to realize that even though the PMI index declined, it still remains near 50, indicating that the economy maintained relative stability compared to the prior month."
Among components that make up the overall index, the finished-goods inventory index rose sharply, from 52.1 to 63.0, and the employment index went from 54.3 to 56.8. The index is a research partnership between the School of Business Administration and the Institute for Supply Management–Southeast Michigan.