Tuesday, October 4, 2011

Georgia manufacturing drops to near two-year low

Atlanta Business Chronicle

After an August rebound, Georgia’s manufacturing sector fell to its lowest level in nearly two years in September, 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 49.7, down 9.4 points from August.

A PMI reading above 50 shows manufacturing activity is expanding, while a reading below 50 shows it is contracting.
September was the third month in a four-month period that the PMI dropped, dashing expectation that August’s turnaround was sustainable, KSU said.

“September’s losses more than offset the 7.4 points gained in August,” said Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business. “The latest reading suggests the perceived soft spot in June and July may be more pervasive than we first thought. Manufacturing has been one of the few bright spots in the current recovery, but apparently it’s not immune from the current slowdown in the broader economy.”

Other highlights of the September PMI:

Production plunged 16.3 points to 46.7
New orders dropped 6.9 to 45
Employment fell 5.6 to 50

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