Manufacturing in Georgia fell 1.5 points to 60.5 in the month of March, but remains strong according to the Purchasing Managers Index released today by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business. 

Georgia manufacturers continue to report strong growth even as national industrial production fell for a second month in March. New orders, production and finished inventory accounted for Georgia’s manufacturing strength, with 50 percent of respondents reporting higher new orders and 60 percent reporting higher production.

While other PMI indicators remained stable, employment registered a sharp drop of 15 points to 55. 

“The size of employment’s March drop off was unusual given the high levels for new orders and production,” said Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University. “That said, it would be reasonable to anticipate employment, which is still at a level of growth, to rebound in the future.”

Despite previous concerns, the harsh winter weather slowdown has had a minimal effect on Georgia manufacturers. 42 percent of respondents anticipate higher production in the next three to six months. 

Other highlights from the March PMI:

• New orders down 1.7 points to 65, 4.5 points above its six-month average
• Production up 5.8 points to 72.5, 8.9 points above its six-month average
• Employment down 15 points to 55, 4.1 points below its six-month average
• Supplier delivery down 6.7 points to 50, 3.9 points below its six-month average
• Finished inventory up 10 points to 60 points, 15.1 points above its six-month average
• Commodity prices up 5.8 points to 42.5, 0.3 of a point 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.