Georgia manufacturing activity reversed course in November primarily on the strength of higher production and employment, according to the Purchasing Managers Index (PMI) released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business. 

The Georgia PMI for November increased 2.0 points to 56.5, 0.7 of a point above its six-month average of 55.8. 

New orders remain at a high level of 65 as production and employment experienced strong increases of 6.1 and 5.5 points, respectively. This improvement was anticipated based on new orders level of 70.5 in October. In addition, finished inventory increased 3.4 points to support improved conditions for manufacturing in November, according to Don Sabbarese, co-director of the Econometric Center and professor of economics at Kennesaw State University. 

“Fifty percent of respondents reported future production is expected to increase for the next three to six months,” Sabbarese said. “This is up from October’s reading of 32 percent.”

Current levels for all Georgia PMI components suggest manufacturing should remain at the current sustainable level of growth.  

Other highlights from the November PMI:

• New orders down 5.5 points to 65, 3.4 points above its six-month average
• Production up 6.1 points to 67.5, 5.3 points above its six-month average
• Employment up 5.5 points to 60, 3.0 points above its six-month average
• Supplier delivery up 0.2 of a point to 52.5, 2.2 points below its six-month average
• Finished inventory up 3.4 points to 37.5 points 6.1points below its six-month average
• Commodity prices flat at 50, 3.8 points below its six-month average

The Georgia PMI provides a snapshot of manufacturing activity in the state, just as the monthly PMI released by the Institute for Supply Management provides a picture of national manufacturing activity. A PMI reading above 50 indicates that manufacturing activity is expanding; a reading below 50 indicates it is contracting.