Highlights

After five consecutive months of growth in measured manufacturing activities, Georgia manufacturers realized a very slight decrease in their May PMI score, going from 48.6 to a score of 48. The decrease in the PMI score can be attributed to a decrease in new orders and production. This decrease was offset by an increase in supplier deliveries that is a result of the increased production realized every month since January.

The decrease in new orders and production was not a surprise given the continued global economic climate coupled with the consistent growth Georgia manufacturers have realized so far in 2009.

Employment was down 3.2 points which also is a result of the decrease in new orders and production. The manufacturing sector reacts very quickly to movement in new orders and production so it does not take long for the employment numbers to follow suit.

Georgia still fares well against the National PMI score of 42.8 but has fallen behind the average of the Southeastern (SE) states that participate in this survey. The SE’s overall score is 50.2 meaning that manufacturing activity in the SE US is in an expansion mode. Georgia is very close to that magical score of 50. Here is a list of scores for the SE states that participate in this survey.

May PMI Scores for SE States

• GA – 48
• AL – 45.7
• FL – 38.1
• TN – 52.5
• LA – 60 (still much attributed to Post Katrina construction)
• MS – 50.9

The PMI study is based on a survey to major companies and analyzes trends and activity of new orders, production, employment, deliveries, purchased materials, finished goods, and commodity prices for the manufacturing sector. Please see the links below for more information on the PMI report from Kennesaw State University’s Econometric Center and for more information about Georgia’s Center of Innovation for Manufacturing:

• http://econometric-center.org
• manufacturing.georgiainnovation.org.