Southeast Michigan Purchasing Managers Index rebounds in July
DETROIT — The Southeast Michigan Purchasing Managers Index (PMI) rebounded in July to 53.1 indicating the unexpected June drop to 49.2 was only temporary. The July PMI is consistent with index figures for the last six of eight months, which are in the low to mid 50's indicating an expanding economy. The three month average is 54.5.
"Key components of the survey contributed to the rebound of July's PMI," according to Nitin Paranjpe, a supply chain faculty member at Wayne State's School of Business Administration who interpreted this month's results. "Production activity is at 54.8, new orders increased to 53.2 and employment was up slightly from the previous month to 58.1. This all points to continued growth in the Southeast Michigan economy," Paranjpe said.
Commodity prices dropped slightly to 54.8, moderating their increase from the prior month. Interestingly, comments from respondents indicate a slight increase in the expectations of the business environment becoming more unstable, with 77.4 percent expected the same or more stability going forward.
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University's School of Business Administration and the Institute for Supply Management - Southeast Michigan. The complete report for July is available for download here.