Manufacturing in Georgia, a key component in the state's economic recovery, is back in the doldrums.
The October Purchasing Managers Index, a monthly measure of the health of factory activity across the state, fell again in October, the second consecutive month of decline, and the sixth decline in the last seven months after a hopeful spring.
The Georgia PMI decreased 5.5 points, a much more severe decline than was experienced by the nation as a whole, leaving the state with an index of 43.2.
A PMI reading of more than 50 indicates that manufacturing activity is expanding; a reading of less than 50 is an indication of contraction.
Georgia is 7.6 points behind the national index of 50.8.
"Georgia's PMI slide in the last three months has been substantial," said Don Sabbarese, director of the Econometric Center at Kennesaw State University's Coles College of Business which released the report Tuesday.
"It's not clear why Georgia manufacturing is operating substantially below the level of the national PMI," he said. "The only possible answer is Georgia's economic recovery remains weaker than on the national level."
The PMI measures manufacturing variables including new orders, production, employment, supplier delivery time, finished inventory and commodity price. In October, only new orders improved from September.
The index also declined for the Southeast region as a whole last month, but not as much as in Georgia. The PMI for the Southeast in October was 47.1, better than Georgia, but worse than the U.S.
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