Southeast Michigan Economic Growth Slows A Bit
DETROIT (WWJ) – The Southeast Michigan Purchasing Managers Index for November came in at 58.3, down from 63.1 in October. Despite a slow-down in the rate of growth, the three-month average for the economy registered a robust 60.4. A PMI value above 50 generally suggests economic growth.
“Purchasing managers attribute the slowdown to a weakening in production and new orders as well as employment and commodity prices,” said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business Administration, who interpreted this month’s results. “However, it’s important to note that even with November’s drop in the overall PMI, each sub-index is above 50, solidly confirming continued growth in our economy.”
Nearly 80 percent of respondents’ report their expectations are for the economy to remain the same or improve over the coming months.
The Southeast Michigan PMI is a diffusion index with a midpoint of 50. A group of corporate purchasing managers is asked monthly if a variety of economic indicators, such as hiring, new orders and production, are the same, higher or lower than a month ago. Those answering higher push the index above 50, those answering lower push it below 50. Thus, PMI values above 50 suggest economic growth, and the higher above 50, the faster the growth, while values below 50 suggest recession.
November prices for low and high density polyethylene, plate steel and bar rod steel were up in price, while petroleum, oil and LNG were down in price.
The Southeast Michigan PMI is a research partnership between Wayne State University’s School of Business Administration and the Institute for Supply Management Southeast Michigan.
The full report can be found at http://www.ism-sem.org/resources/files/2013-November-PMI-Report.pdf.