Georgia manufacturing saw a strong upsurge for the month of February due to increases in production and new orders. While the level of increase was unexpected, the direction of improvement was not, according to the Purchasing Managers Index released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
 
February’s PMI of 61.6 is a 9.6 point jump from January’s reading of 52, with most of the improvement driven by new orders and production. New orders increased 16.4 points to 68.4 and production increased 26.3 points to 76.3 points. Employment improved 4.6 points to 52.6 and supplier delivery time increased 3.4 points to 47.4.
 
Although new orders and production tend to be the most volatile from month to month, these increases were unexpected and unsustainable, according to Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University.
 
“That said, it does suggest Georgia manufacturing is moving in the right direction, ” said Sabbarese.
 
The National PMI reading of 49.5 is an increase of 1.3 points for February. The National report identified only 9 of 18 industries expanding in February.  
 
Summary of highlights from the February PMI:

-New orders up 16.4 points to 68.4, 13.2 points above its six-month average

-Production up 26.3 points to 76.3, 19.4 points above its six-month average

-Employment up 4.6 points to 52.6 points, 0.2 points below its six-month average

-Supplier delivery up 3.4 points to 47.4, 3.2 points below its six-month average

-Finished inventory down 2.8 points to 63.2 points, 8.1 points above its six-month average

-Commodity prices up 2.2 points to 34.2, 1.2 points below its six-month average