Georgia’s PMI Drops Slightly in May

June 5th, 2013

Georgia's Purchasing Managers' Index dropped last month. WABE's John Lorinc reports.

Georgia’s Purchasing Managers’ Index has been heading south for the summer.

The Peach State’s PMI was 61.8 in March. But, the Econometric Center at Kennesaw State University reports it fell to 54.4 in April, and dropped again in May to just under 54.

The PMI is used as a barometer to measure the state’s economic health.

“There was a lot stronger growth in the first three months of 2013, but now we think we’re starting to see a slowdown,” says Dr. Don Sabbarese, the director of the center.

A number of factors are to blame for this downward trend.

“Certainly what’s going on in Europe and the global economy has exports slowing down. And then with, you know, the higher payroll tax, there are some things that I think are starting to sink into the economy that wasn’t there in those first three months. So I think we’re picking up some of that,” says Sabbarese.

But, economic analysts say any number above the 50-point watermark shows an economy is still expanding. In other words, Georgia is down…..but not out.

“My guess is the Georgia manufacturing will continue to grow probably at the current level that we’re looking at now, so it’s not all bad,” says Sabbarese.

Despite these recent drops, Georgia’s PMI is still higher than the national average, which has fallen to 49.