S.E. Purchasing Managers Index points to a favorable summer economy
The Southeast Michigan Purchasing Managers Index (PMI) moved up slightly between April and May, from 66.3 to 66.4. The PMI’s three-month average is also very strong, moving up more than three points to 65.7. A PMI value above 50 generally suggests economic growth.
"The Production index led the growth last month, gaining nearly 10 points," said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business, who interpreted this month’s results. "The New Orders and Employment indices also continue to be very strong."
Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and Institute for Supply Management board member, says the PMI indicates strong and steady economy.
"The economy has been very stable in recent months," Doherty said. "The numbers indicate an optimistic outlook going into the summer."
Overall, 87.5 percent of respondents said they expected the economy to stay about the same or become more stable over the next six months, while only 12.5 percent believed the economy would become less stable.
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University’s School of Business and the Institute for Supply Management - Southeast Michigan.
The full report can be found at http://www.ism-sem.org/resources/files/Report-on-Business-May-2015.pdf.