DETROIT (WWJ) — The Southeast Michigan Purchasing Managers Index rebounded in July to 53.1.
Economists said the quick rebound indicated that 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.
The PMI index is written so that readings above 50 indicate growth — the higher above 50, the faster the growth — and readings below 50 indicate recession — the lower below 50, the worse the recession.
“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.”
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 Purchasing Managers Index for July is available at http://www.ism-sem.org/uploaded_pics/pdf-20130726190457.pdf.
The Institute for Supply Management – Southeast Michigan serves its members as an affiliate of the Institute for Supply Management by providing superior opportunities for education, networking, and career enhancement as a means of advancing and promoting the leading edge practices and profession of purchasing and supply management. Visit their website at http://www.ism-sem.org.