KSU index shows glimmer of hope

Georgia’s manufacturing sector has inched back into hailing range of recovery.

The battered sector, which still accounts for 10 percent of the state’s jobs, was still declining in April, but the picture improved for the fourth straight month, according to an index calculated by Kennesaw State University.

“It’s making a stronger case that this trend may continue,” said economist Don Sabbarese, director of the school’s Econometric Center.

The Kennesaw index climbed 3.3 points in April to 48.6 —- still below 50, the point that would indicate expansion, but almost double its record low of 26.8 in December. The gain indicates business looked better for a growing number of companies in all index components, including new orders, production and hiring.

If that keeps up, manufacturing in Georgia could emerge from recession before the rest of the nation.

Georgia’s report paralleled a survey from the Institute for Supply Management, which showed a similar, four-month streak nationally. The national number is 40.1.

The numbers are consistent with a “moderation in decline,” according to economist Ryan Sweet of Economy.com.

Much of the drop in manufacturing —- both nationally and in Georgia —- can be laid at the feet of the global recession. American exports this year have been running roughly 17 percent below the levels of a year ago.