Southeast Michigan Purchasing Managers Index rebounds to 60 in July
The Southeast Michigan Purchasing Managers Index (PMI) made a strong come back in July reaching 60.0, after experiencing a dramatic drop in June to 47.1 and making July’s numbers much more aligned with those from spring. However, the dramatic swing caused the three month PMI average to grow more slowly, moving from 53.6 to 55.7. A PMI value above 50 generally suggests economic growth.
"The return of the PMI in July to 60, is consistent with the months of March, April and May, and suggest that the dramatic drop in June’s PMI was a fluke," said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business Administration, who interpreted this month’s results. "Data from the Production Index, New Orders Index and Employment Index all increased in July signaling an expansion in the Southeastern Michigan economy."
Though the recent swings in the PMI are reflective of some risk and uncertainty perceived by some respondents, 87 percent see the economy as stable or more stable, with less than 20 percent seeing it as less stable.
July prices were up for packing supplies, lumber, resins, waxes and steel. Petroleum was down in price.
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.