Georgia manufacturing activity rose 6.5 points to 62 points in February, powered by increases in new orders, 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. 

This level of strength comes as a surprise given recent headwinds from winter storms, export challenges from a stronger dollar and a weak global demand. More than 40 percent of respondents reported higher new orders, production and employment numbers, and 53 percent anticipate higher production in the next three to six months. New orders and production saw the largest increases in February, rising 12.1 and 3.0 points, respectively. 

The level of Georgia’s PMI suggests that manufacturing should continue grow. However, the lag effect of the West Coast gridlock and winter weather in the Northeast may still have a lingering drag on next month’s PMI, according to Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University. 

“The current PMI level may slip in March, but should remain on a solid growth path,” Sabbarese said.

Other highlights from the February PMI:

• New orders up 12.1 points to 66.7, 5.7 points above its six-month average
• Production up 3.0 points to 66.7, 4.9 points above its six-month average
• Employment up 10.9 points to 70, 10.6 points above its six-month average
• Supplier delivery down 2.4 points to 56.7, 1.6 points above its six-month average
• Finished inventory up 9.1points to 50 points, 8.3 points below its six-month average
  
  
• Commodity prices up 0.3 points to 36.7, 7.7 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.