Signs of life are being seen in at least one important facet of the state’s economy.
Georgia’s manufacturing sector looks to be on the rebound. The Georgia Purchasing Managers Index rose by 3 points to a reading of 47.3 for July.
A reading of 50 is considered the point where manufacturing activity is expanding. But while the current mark is still below 50, it’s believed manufacturing is now contracting at a slower rate in Georgia.
The report directed by Kennesaw State University professor Don Sabbarese shows an uptick in new orders and production spurred the better index number:
"It’s only about 10% of the Georgia economy in terms of the number of jobs in manufacturing, but I think it’s an important sector because it is very sensitive to the business cycle itself."
The report shows while new orders spiked in July, many manufacturers are still cautious in hiring.
The report surveyed 80 manufacturers across the state.
Don Sabbarese is director of the Econometric Center at Kennesaw State.