The Southeast outperformed the national average in all five components of the PMI, registering at 57.6 for the month of April. This puts the Southeast 6.1 points above the national average of 51.5, and a sizable 9 points ahead for production and 12.7 points ahead for employment.

“As the Southeast outperforms national manufacturing it suggests that some regions in the U.S. are more susceptible to the sharp downturns in the oil and gas industry and the slowdown of exports as a possible explanation for this divergence,” said Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University.

A 6.8-point drop for finished inventory primarily fueled the slight decrease for the month of April. According to Sabbarese, this number is not concerning when considered alongside the strength of new orders. Another positive sign comes as 46 percent of respondents say they expect production to increase in the next three to six months and 15 of the 18 national manufacturing industries report growth.

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.

Highlights of the April Southeast PMI include:  

· New orders increased 0.1 of a point to 57, based on increases for Alabama, Mississippi and  Tennessee

· Production increased 3.2 points to 65, based on increases for Alabama, Florida, Mississippi and Tennessee

· Employment increased 3.2 points to 61, based on increases for Alabama, Georgia, Mississippi and Tennessee

· Supplier delivery time decreased 1.9 points to 53, based on decreases for Alabama, Florida, Louisiana and Tennessee

· Finished inventory decreased 6.8 points to 52 points based on decreases for Florida, Georgia, Mississippi and Tennessee

· Commodity prices increased 4.8 points to 45, based on increases for Alabama, Georgia, Mississippi and Tennessee