Southeast manufacturing activity continued its upward climb for the second consecutive month in February, seeing its biggest numbers since April 2014, according to the Southeast’s Purchasing Managers Index (PMI) report released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business. 

The Southeast PMI increased 4.9 points to 60.5, powered by new orders, production and employment. New orders and production’s readings of 63.4 and 64.6 are at their highest levels since October 2014, and employment recorded its highest reading since May 2014.

Weather conditions and a recently settled port strike on the West Coast may impact PMI numbers down the road, but Georgia manufacturing is off to a good start for 2015, according to Don Sabbarese, 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. Four of the six experienced higher PMI readings. 

“The Southeast PMI reading is now 7.6 points higher than the National PMI of and 5.2 points above its six-month average,” Sabbarese said. “Normally when the Southeast and National PMIs diverge to this extent they eventually readjust. The next couple of months may demonstrate such an adjustment.”

Highlights of the February Southeast PMI include:  

· New orders increased 6 points to 63.4, based on increases for all states except Tennessee

· Production increased 3.5 points to 64.6, based on increases for all states except Louisiana

· Employment increased 7.8 points to 67.1 based on increases for Alabama, Florida and Georgia 

· Supplier delivery time increased 1.8 points to 53.7, based on increases for Florida and Tennessee

· Finished inventory increased 5.5 points to 53.7 based on increases for Florida, Georgia and Tennessee

· Commodity prices decreased 1.7 points to 35.4, based on decreases for states except Alabama and Tennessee

The Southeast PMI reading is a composite of five variables — new orders, production, employment, supply deliveries and finished inventory. A sixth variable, commodity prices, is compiled by the Coles College’s Econometric Center but does not go into the PMI calculation