After a sluggish summer, Georgia factories appeared poised to hum in the fall, thanks to an uptick in state manufacturing activity in September following four consecutive months of decline.
But manufacturers took a step back in October, according to the latest monthly Purchasing Managers Index Report from the Econometric Center at the Coles College of Business at Kennesaw State University.
Manufacturers reported that new orders declined last month, leading to a drop in the PMI, a composite index that measures the sector’s health. Besides new orders, it takes into account production, employment, supplier delivery time and finished goods.
The PMI dipped 0.3 points to 51.7 in October. An index of more than 50 indicates manufacturing is expanding, and anything less indicates it is contracting.
While the latest number still denotes expansion, the decrease after a strong September was disappointing.
“October’s PMI suggests September’s PMI increase of 1.6 points may not be a signal that manufacturing was improving,” said Don Sabbarese, director of the Econometric Center.
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