Georgia International Business Index Jumps for 3Q of 2014
Press release from the issuing company
Monday, October 27th, 2014
Georgia international manufacturing activity rebounded for the third quarter of 2014, according to the Georgia International Business Index (GIBI). The quarterly survey was released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
The third-quarter GIBI jumped by 12.2 points to 71.2, more than reversing the 10.7-point drop during the second quarter of 2014. According to the report, this increase is due largely to strengths in all components, including new orders, production, employment and capital spending among foreign-funded manufacturers. Capital spending and new orders led the way with increases of 19.5 and 15.9 points, respectively.
“Georgia and the GIBI’s common components of new orders, production, and employment has the GIBI with higher readings for all three components by 16.9, 5.1, and 15.1 points, respectively,” said Don Sabbarese, co-director of the Econometric Center and professor of economics in the Michael J. Coles College of Business at Kennesaw State.
The GIBI’s third-quarter rally also included improvement on capital spending, exports and imports.
According to Sabbarese, the third-quarter GIBI returned to its first-quarter levels, suggesting second quarter’s results may have been an aberration from the earlier quarter’s trend.
Highlights from the third-quarter GIBI include:
- New orders up 15.9 points, to 73.1
- Production up 4.7 points, to 65.4
- Employment up 8.8 points, to 73.1
- Capital spending up 19.5 points, to 73.1
- Exports as a percent of total sales is up 0.2 of a percent, to 12.6
- Imports as a percent of total sales is up 0.1 of a percent, to 41.3
The Georgia International Business Index provides a quarterly snapshot of manufacturing activity for foreign-funded businesses in the state. The survey is a composite of four components — new orders, production, employment and capital spending. A GIBI reading above 50 indicates that manufacturing activity is expanding; a reading below 50 indicates it is contracting.
The GIBI, compiled from a quarterly survey of manufacturers, is the only indicator of market conditions for foreign-funded manufacturers. Manufacturing, which accounts for 9 percent of total employment, is sensitive to changes in the economy and trends in manufacturing, and reveals differences between domestic and foreign-funded manufacturers.
The GIBI’s value is in its timeliness and sensitivity to variables such as interest rates, global markets and other economic changes. The Georgia International Business Index provides valuable data used by businesses and government agencies to assist in its analysis of current economic conditions, along with many other data sources, to get a picture of economic activity.
