On Tuesday, the Econometric Center in the Kennesaw State University’s Michael J. Coles College of Business released their Purchasing Managers Index (PMI). The Atlanta Business Chronicle reports that the index shows a drop in the manufacturing sector for the third month in a row.
If you’re unfamiliar with the term, PMI is an indication of the economic health of the manufacturing sector. The index is found using a few major indicators including things like new orders, inventory levels and production. A PMI of more than 50 means the sector is expanding, under 50 means a contraction and 50 indicates no change.
Don Sabbarese, director emeritus of the Econometric Center and professor of economics at KSU explained what these numbers mean in context. “These numbers raise the question of whether or not this is a one-month adjustment or a more persistent change,” Sabbarese said “The next three months will offer a clearer answer to that question.”
So, what does this mean for a potential MBA student heading towards Atlanta? Well, you may be coming in to a market that is filled with some uncertainty, but those are the markets where you can make a change, right?
The Atlanta Business Journal provided particular highlights from the May PMI:
- New orders down 12.4 points to 47.6
- Production down 15.1 points to 52.4
- Employment up 1.9 points to 61.9 points
- Supplier delivery up 6.8 points to 64.3
- Finished inventory down 4.9 points to 47.6 points
- Commodity prices up 0.1 of a point to 47.6