Georgia manufacturing retreated in December following three months of gradual growth, according to the Purchasing Managers Index released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
 
December’s PMI of 52.5 is a 2.5 drop from November’s reading of 55. Supplier delivery time and finished inventory were the major contributors, with decreases of 6.6 and 6.8 points. Employment also saw a decrease of 1.8 point to 55. Both new orders and production saw growth of 2.5 and .2 points.
 
“Although Georgia and the National PMIs both declined in December, Georgia’s underlying components and PMI continue to register well above the National reading of 48.2,” said Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University. “A reading below 50 is a range of contraction, which continues to demonstrate that the industrial and manufacturing sectors of the U.S. economy currently remain weak.”
 
According to Sabbarese, one positive indicator in this month’s report is the number of respondents expecting higher production in the next three to six months. That number increased to 45 percent, up from November’s reading of 32 percent.
 
The National PMI reading of 48.2 fell 0.4 of a point and remains 4.3 points below Georgia’s PMI of 52.5 points. The National report identified only 6 of 18 industries expanding in December.  
 
Summary of highlights from the December PMI:

-New orders up 2.5 points to 52.5, 0.6 points above its six-month average

-Production up 0.2 points to 52.5, 1.1 points below its six-month average

-Employment down 1.8 points to 55 points, 1.0 points above its six-month average

-Supplier delivery down 6.6 points to 52.5, 0.5 points above its six-month average

-Finished inventory down 6.8 points to 50 points, 2.0 points above its six-month average

Commodity prices down 3.9 points to 32.5, 6.4 points below its six-month average