NEWS - Manufacturing

SBJ Staff Report

Jan 12, 2012 - Declines in new orders and production caused the Georgia manufacturing sector rating to drop more than 6 points on the year, reports the Econometric Center at Kennesaw State University’s Coles College of Business.

Georgia’s Purchasing Managers Index (PMI) -- a reading of economic activity in the state’s manufacturing sector -- declined 6.4 points from 53.8 in January 2011.

A PMI reading above 50 shows manufacturing activity is expanding, while a reading below 50 shows it is contracting.

The PMI also was down 5 points to 47.4 in December 2011.

“As we start the new year, there is no clear trend for 2012,” according to Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business, who said no clear trend is evident going into 2012.

Orders and production rose into the first six months of 2011, but fell significantly in the second half. This makes it difficult to predict any direction for 2012, Sabbarese said.