The Southeast PMI increased 10 points to 55.6 in the month of January. New orders and production drove up all PMI components except for finished inventory and commodity prices. Finished inventory’s drawdown is consistent with the increase for new orders and production, according to Don Sabbarase, director emeritus of the Econometric Center and professor of economics at Kennesaw State University. 

Six Southeastern states — Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee — are included in the Econometric Center’s monthly regional report. All six experienced higher PMI readings.

“Southeast manufacturing’s return to its six-month average suggests that December’s decrease was an aberration instead of an adjustment to a lower trend,” Sabbarese said. “Further support for that point is the 54 percent of respondents reporting their production will increase to in the next three to six months.”

Highlights of the January Southeast PMI include:  

· New orders increased 23.4 points to 57.4 based on increases for all states except Florida

· Production increased 21.1 points to 61.1, based on increases for all states

· Employment increased 5.3 points to 59.3 based on increases for all states

· Supplier delivery time increased 1.9 points to 51.9, based on increases for Alabama, Georgia, and Mississippi

· Finished inventory decreased 1.9 points to 48.1based on decreases for Florida, Georgia,  and Louisiana

· Commodity prices decreased 5.0 points to 37, based on decreases for all six states except Mississippi