We had a link in the Morning Reads yesterday about China’s Purchasing Manager’s Index falling as a result of a worldwide economic slowdown. The domestic PMI is also slipping, with Georgia slipping more than the national average. Walter Jones reports:
The Georgia Purchasing Managers Index retreated 6.9 points to a reading of 55 in June while the national PMI dropped just 3.8 points to 49.7.
A reading above 50 is considered an indicator of continuing economic expansion.
Econometric Center Director Don Sabbarese noted that while Georgia’s index still points to a growing economy, the recent pattern invites concern.
“Georgia’s two-month slide of 8.8 points to 55 is still operating above the national PMI, but that is not much solace given the two-month trend,” he said.
The state index started the year at 52 and rose to a peak of 64 in April before retreating to the current level.
The positive note is that Georgia has been above 50 for the first half of the year, indicating that we are still growing our manufacturing base. The slower rate of growth and getting closer to a rate of 50 is of great concern. We need to get this trend back in a positive direction quickly. Expect even more political press releases saying simply “Jobs.”