Ga. manufacturing slides in September

Atlanta Business Chronicle:

Manufacturing was on the downswing once again in September, dropping to a low not seen since January, according to the Econometric Center at 

Kennesaw State University’s Coles College of Business.

Georgia’s Purchasing Managers Index (PMI) -- a reading of economic activity in the state’s manufacturing sector -- for September was 53.6, down 1.4 points from August.

A PMI reading above 50 shows manufacturing activity is expanding, while a reading below 50 shows it is contracting.

The latest reading is the lowest since January, when it stood at 46.1, and was 4.8 points below the PMI’s six-month average. September was the second consecutive month of PMI decline.

“The September numbers paint a clearer picture of a manufacturing sector that continued to slow down in the third quarter of 2010,” said Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business. “However, even at this slower growth rate, manufacturing is expected to continue to stay above 50, which is the PMI benchmark for growth, for the fourth quarter.”

New orders were down by 1.3 points to 52 and production decreased 4.7 points to 52. Hiring dropped 5.3 points to 48.

Some 20 percent of survey respondents said they expected higher production in the next three to six months, down from 23 percent for August, Sabbarese said. That compares with 53 percent barely six months ago.