Southeast Michigan PMI shows economic slowdown

By Matt Roush

The Southeast Michigan Purchasing Managers Index for July registered 54.6, down from the June PMI of 60.3. The survey shows growth in the Southeast Michigan business economy, though at a slower rate from the past two months. “The only individual score consistent with signs of a rebounding economy is the upward trend for employment,” said Ken Doherty, a member of the Institute for Supply Management and assistant vice president for procurement and strategic sourcing at Wayne State University. “The employment index is down from June’s index of 76.1, but remained very strong at 66.” “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 management faculty member at Wayne State’s business school, who analyzed the survey data. “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.”