Survey of local purchasing managers shows employment index at nearly a five-year high

The Southeast Michigan Purchasing Managers Index (PMI) came in at 60.3 in June, a marked drop from 66.3 in May. However, PMI index values above 50 generally suggest an expanding economy, and that means the local economy continues to show improvement, though at a slightly slower rate this past month.

The Production Index value was strong at 60.9 and the Employment Index again was very strong at 76.1.

“The Employment Index continues to indicate that employment conditions in Southeast Michigan are favorable,” said Timothy Butler, associate professor of supply chain management at Wayne State’s business school. “The three-month average is at a very strong level of 75.5, and at 76.1 this month, the index is close to a five-year high.”

New orders dropped from 67.3 last month, but remained positive at 54.2. Finished goods inventory declined slightly to 47.8, beneath the threshold index value of 50.

The Commodity Prices Index dropped from 50.0 to 43.5, with purchasing managers noting that petroleum products and copper are down in price. Resins and plastics were reported to be up in price.

“Something is happening in the Southeast Michigan economy that is driving this dramatic drop in the Commodity Price Index, but at this time the cause remains unknown,” said Ken Doherty, a member of the Institute for Supply Management and assistant vice president for procurement and strategic sourcing at Wayne State University.

Over 77 percent of respondents reported that they believe the economy will remain the same or become more stable over the next six months.

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.

View all news stories