SE Michigan Purchasing Managers Index drops due to declining new orders
The Southeast Michigan Purchasing Managers Index (PMI) dropped to 47.1 in June after reaching 60.0 in May and three successive months of rising scores. However, the drop has affected the three month PMI average only slightly, moving from 56.2 to 56.3. A PMI value above 50 generally suggests economic growth. "The major factor contributing to the PMI’s drop in June was the decline in the New Orders Index from 59.1 to 39.1," said Tim Butler, associate professor of supply chain management at Wayne State University’s School of Business Administration, who interpreted this month’s results. "Other key components to be considered are both the Production Index which dropped from 59.1 to 45.7 and the Employment Index that fell from 70.5 in May to 57.1 in June," Butler said.