Georgia manufacturers reported a drop in new orders and production, bringing their readings to 60 and 67.5 points, respectively. While each dropped five points from March, a reading above 50 indicates expanding activity. 40 percent of respondents reported higher new orders and 45 percent reported higher new production for April. Employment’s five-point increase to 60 demonstrates confidence in continued strength for these manufacturers.

“Georgia manufacturing continues to outperform regional and the national manufacturing based on their most recent PMI reports,” said Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University. “This may be partially related to an uptick in Atlanta’s commercial and residential construction.”

40 percent of respondents in April anticipate higher production in the next three to six months. No respondents anticipate lower production in the next three to six months.

Other highlights from the April PMI:

• New orders down 5.0 points to 60, 1.3 points above its six-month average
• Production down 5.0 points to 67.5, 2.9 points above its six-month average
• Employment up 5 points to 60 points, equal to its six-month average
• Supplier delivery up 7.5 points to 57.5, 2.7 points above its six-month average
• Finished inventory down 7.5 points to 52.5 points, 4.5 points above its six-month average
• Commodity prices up 5.0 points to 47.5, 5.1points above 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.