Purchasing managers index shows SE Michigan employment lagging despite indicators of statewide stabilization

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DETROIT, Jan. 4 — Manufacturing activity remains stable in Southeast Michigan but job creation is stagnant, according to a recent survey of purchasing managers.

The region’s Purchasing Managers Index (PMI) returned to a more optimistic 51.5 after dipping to 49.5 in November. The index remained stable for the past three months, with values near 50. An index value greater than 50 usually indicates an expanding economy.

The PMI is based on monthly surveys of local purchasing managers conducted by the Institute for Supply Management – Southeast Michigan and the Wayne State University School of Business Administration. It tracks manufacturing-related economic indicators like commodity prices, vendor deliveries, inventories, new orders and production volumes. It also surveys employment activity.

Results for December are mixed, according to Timothy Butler, associate professor of global supply chain management in the business school. He analyzed the ISM survey results.

“New orders are up, which indicates some growth, but raw material and finished goods inventories are reported up as well, which can indicate slower sales,” he said.

Butler acknowledges that employment lags behind the other economic indicators in the Southeast Michigan report, despite a small increase in employment statewide.

“Survey respondents indicated that employment levels are declining,” he said. “This is in contrast to recent reports of slightly improving employment levels statewide. Michigan’s unemployment rate declined for two consecutive months, dropping from 15.3 percent to 14.7 percent.”

Half the purchasing managers surveyed believe the region’s business environment will remain about the same in the next six months. Around 27 percent expect conditions to improve, while 23 percent expect a decline.

The full Purchasing Managers Index report is available online at http://www.ism-sem.org/cat/Additional+Links-9.html?49.


The Institute for Supply Management – Southeast Michigan serves its members as an affiliate of the Institute for Supply Management by providing superior opportunities for education, networking, and career enhancement as a means of advancing and promoting the leading edge practices and profession of Purchasing and Supply Management.

The School of Business Administration at Wayne State University provides quality business education through degree programs accredited by AACSB International.

Wayne State University is a premier urban research university offering more than 350 academic programs through 13 schools and colleges to more than 31,000 students.

The Institute for Supply Management – Southeast Michigan serves its members as an affiliate of the Institute for Supply Management by providing superior opportunities for education, networking, and career enhancement as a means of advancing and promoting the leading edge practices and profession of Purchasing and Supply Management.

The School of Business Administration at Wayne State University provides quality business education through degree programs accredited by AACSB International.

Wayne State University is a premier urban research university offering more than 350 academic programs through 13 schools and colleges to more than 31,000 students.