Georgia's manufacturing sector showed continued strength in February.
New orders and production both surged in February, according to the latest Purchasing Managers Index Report, suggesting that a turn for the better in factory activity that started last month could be a real sign of better things coming.
The report came as the state reported that the unemployment rate had fallen again, to 9.2 percent, its lowest mark in nearly three years.
To compile the PMI, the Econometric Center at the Kennesaw State University surveys manufacturers. It factors in five variables including new orders, production, employment, supply deliveries and finished inventory.
A PMI above 50 indicates the sector is expanding. Anything below 50 indicates contraction.
After an inconsistent 2011, the PMI rose 4.9 points in January to 52.3. It turned up again in February, to 61, a gain of 8.7 points.
The biggest improvements came in new orders and production. Among respondents, 43 percent reported higher new orders.
Fifty percent also said they expect production to increase in the next three to six months. That's up from 37 percent who thought so in January. Only 3 percent expect it to be lower.
"Bottom line, manufacturing is looking up for Georgia," said Don Sabbarese, director of the Econometric Center.
He said the increase in February, "further confirms that Georgia manufacturing is on the uptick. Should this trend continue, it will strengthen this sector's perception that its current growth rate is sustainable."
About the Author
