Factory activity in Georgia declined again in August, marking the fourth consecutive month in which the state’s manufacturing sector has slipped.
The Purchasing Manager’s Index, which provides a snapshot of how well manufacturing is doing, fell to 50.4, barely above the 50.0 mark that distinguishes whether the sector is expanding or shrinking.
After the index reached 63.8 in April, which was the highest level since May 2011, the current reading landed with a loud thud.
“These numbers further confirm manufacturing’s sharp four-month decline in activity,” said Don Sabbarese, director of the Econometrics Center at the Coles College of Business at Kennesaw State University, which issued the report.
The PMI takes into account six underlying variables. A significant decline in one of the components, new orders, weighed heavily on the index.
The state PMI is drawn from a sample of Georgia manufacturers.
Looking ahead, 14 percent of manufacturers who responded said they expect higher factory production in the next three to six months, while 18 percent of those who responded said they expect lower production.
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