Southeast Michigan Purchasing Managers Index reports continued economic expansion in August
The Southeast Michigan Purchasing Managers Index (PMI) for August is 54.8, which is just above the PMI’s three-month average of 54.0. A PMI value above 50 generally suggests economic growth.
Primary factors behind this month’s PMI include the New Orders Index (60) and the Employment Index (60), which remained strong in August.
"The Employment Index has been at 50.0 or above continuously since July 2012, reflecting steady growth in Southeast Michigan jobs," said Timothy Butler, associate professor of supply chain management at Wayne State’s School of Business Administration, who interpreted this month’s results. Meanwhile, the Production Index dropped from 65.9 to 50.0 and the Finished Goods Inventory Index came in at 43.3.
In a show of confidence, more than 93 percent of the respondents believe the Southeast Michigan economy will remain stable or become more stable over the next six months.
In August, prices were up for resins, waxes, electrical parts, welding gases, and airfare. Silver and petroleum went 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.
The full PMI report for August can be found at http://www.ism-sem.org/resources/files/Report-on-Business-August-2014.pdf.