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Friday, September 2, 2011 - 11:18am

Georgia Manufacturing Looking Up

Manufacturing in Georgia is looking up after a four month downward spiral according to Don Sabbarese, Director of the Econometric Center at the Coles College of Business at Kennesaw State University.

Georgia’s Purchasing Managers Index (PMI) for August has shown a 7.4 index increase from the month of July, bringing in a final index of 58.1.

Sabbarese describes the decrease in index for July, June, May, and April as a “soft spot rather than a trend” in manufacturing reports.

He says that disruption in the Japanese car market from the tsunami and high gas prices at home led to the declining index for those months.

Sabbarese says the increase in index is one of the bright spots in Georgia’s economy, and that he’s seen a pick up in employment in Georgia’s manufacturing industry.

Georgia’s PMI measures the economic movement in the manufacturing sector in the state. The benchmark for Georgia’s PMI is 50. Anything above that is considered an increase, and anything below is considered a decrease.

The Georgia PMI reflects five variables – new orders, productions, employment, supply deliveries and finished inventory.

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