SE Michigan economy may be picking up steam

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The Southeast Michigan Purchasing Managers Index rebounded to 57.6 in February from a January index value of 45.5, signifying growth in the Southeast Michigan economy. The index is compiled from a survey of local purchasing managers conducted by the Institute for Supply Management – Southeast Michigan. Readings greater than 50 indicate expanding economic activity. Most of the indicators used to construct the index improved in February, including production, new orders, and employment. The employment index saw the most significant change, expanding for the first time in five months and leaping more than 24 points.

“Based on the February survey of local purchasing managers, it appears that economic growth in Southeast Michigan may be catching up with the rest of the country,” said Timothy Butler, associate professor of global supply chain management at the Wayne State University School of Business Administration, who analyzed the survey results. “While the numbers this month are hopeful, we will have to wait and see if this trend continues over the next several months.”

The national PMI for February is 56.5, marking seven consecutive months of growth in the manufacturing sector. While the Southeast Michigan index for February is slightly higher, the most recent numbers have shown instability, with the last quarter of 2009 showing index values hovering near 50, indicating no change in the economy.

More than 90 percent of the survey respondents expect the business environment will remain the same or become more stable over the next six months. Butler says that there are continuing concerns among purchasing managers, including unemployment and its effects on consumer confidence and demand, and financial issues such as credit availability for supplier firms.

The full February Purchasing Managers Index report is available online at
http://www.ism-sem.org/uploaded_pics/pdf-20100303151837.pdf.

Purchasing Managers Index
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.

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