May’s PMI of 52.4 was driven down by an 11-point decrease in new orders and a 16-point decrease in production. This month’s slowdown has realigned the Southeast with the national PMI’s reading of 52.8. Higher new orders and production numbers bolstered the national PMI, while Southeast employment remained strong at 8.3 points above the national reading of 51.7.

According to Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University, strength in employment and other economic factors suggest that new orders and production will not continue to fall into June, and may actually see a modest rally.

“The National PMI and other related data for January through April revealed weakness in manufacturing that was less pronounced in the Southeast PMI,” Sabbarese said. “The May National PMI’s 1.3 point increase may demonstrate and end to that trend.”

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 May Southeast PMI include:  

· New orders decreased 11 points to 46, based on decreases for Alabama, Georgia, Louisiana and  Tennessee

· Production decreased 16 points to 49, based on decreases for Alabama, Georgia, Louisiana and Tennessee

· Employment decreased 1.0 point to 60, based on decreases for Florida, Louisiana, Georgia, Mississippi and Tennessee

· Supplier delivery time increased 3.0 points to 56, based on increases for Alabama, Georgia

and Tennessee

· Finished inventory decreased 1.0 point to 51 points based on decreases for Florida and Georgia

· Commodity prices increased 9.0 points to 54, based on increases for all six states