Highlights

Manufacturing activity in Georgia is currently mirroring that of the Southeast and Nation. In June, all experienced a decrease in overall manufacturing activity from May, but all still continue to expand their activity. This appears to be a leveling off of the significant growth we have experienced over the last few months.

Georgia’s PMI score decreased 5.8 points due to a decrease in all variables except Employment, which increased two points. The increase is due to 32% of respondents reporting increased employment versus 3% reporting decreased employment.

While the New Orders variable decreased 8.7 points, it remains at a very strong level with a score of 64.5. Production slipped 9.6 points but also continues to expand. This decrease is partially due to the significant decrease in Finished Inventory, which dropped 10.9 points.

Overall, the reported activity indicates that the manufacturing sector in Georgia is continuing its recovery and expansion, just at a slower pace than what we have experienced since March. Until June, each month this year has improved upon the previous month. The leveling off of this trend is expected.

June 2010 PMI Scores

• Georgia – 57.4
• Southeast – 57.9
• National – 56.2

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

http://manufacturing.georgiainnovation.org/about/us