Factory activity in Georgia declined in May after a robust April, a possible sign that the slowdown in the global economy may be hitting home.
New orders, production, employment and commodity prices all slipped last month, driving down the Georgia Purchasing Managers Index, a measure of the state's manufacturing health.
The monthly report is compiled by the Econometric Center at the Coles College of Business at Kennesaw State University.
Don Sabbarese, director of the center, said that while Georgia scored better than the Southeast region in May and still remains ahead of the nation as a whole in factory activity, the manufacturing gains the state has chalked up lately may be retreating because of the downturn in the world economy.
Another factor, he said, is that new orders and production both were particularly high in April and Georgia factories may have adjusted back to "a more normal level" in May.
The Georgia PMI for the month fell to 61.9, down 1.9 points from April. It had improved 3.1 points the month before.
A PMI of more than 50 indicates that manufacturing is expanding. A PMI of less than 50 indicates that the industry is contracting.
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