The Georgia PMI for October decreased 2.3 points to 54.5, 1.3 points below its six-month average of 55.9.

New orders continue to improve, reaching 70.5, as production remains high but flat at 61.4. High new orders levels typically lead to improved levels for the PMI’s other components, but employment, supplier delivery time and finished inventory all dipped in October. Despite this, new orders three consecutive month growth rate should lead to sustainable growth for the PMI’s other variables, according to Don Sabbarase, co-director of the Econometric Center and professor of economics at Kennesaw State University.

“Respondents reported future production expectations increasing for the next three to six months at 32 percent for October,” Sabbarese said. “This is down from September’s reading of 41 percent.”

According to Georgia manufacturing’s new orders and production levels, the PMI should improve in    November. However, future expected production brings to question whether or not that will be the case.

Other highlights from the October PMI:

• New orders up 2.3 points to 70.5, 8.4 points above its six-month average
• Production flat remains at 61.4, 0.6 of a point below its six-month average
• Employment down 2.3 points to 54.5, 2.0 points below its six-month average
• Supplier delivery down 4.5 points to 52.3, 2.8 points below its six-month average
• Finished inventory down 6.8 points to 34.1, 9.7 points below its six-month average
• Commodity prices down 2.3 points to 50, 6.8 points below its six-month average