Mich. PMI Shows Solid Economic Growth For Detroit Area
The Southeast Michigan Purchasing Managers Index (PMI) for April is 53.6. Though that’s down slightly from 55.0 in March, it is still indicative of an expanding economy. A PMI value above 50 generally suggests economic growth.
“The good news is the economy is continuing to come back,” said Tim Butler, associate professor of supply chain management at Wayne State’s School of Business Administration, who interpreted this month’s results. “That the PMI settled down a bit from March, only demonstrates that the rate of growth is continuing at a steady pace, overall. Another indicator of an expanding economy is the three-month moving average index, which increased from 51.5 to 52.0,” Butler said.
Comments from purchasing managers responding to this month’s survey ranged from “Companies continue to hoard cash and postpone capital investments and hiring,” to “We are beginning to see our customers finally breaking loose and ordering capital equipment.”
Additionally, respondents cited a continuing concern about health care reform and the national economy. Just over 76 percent of respondents anticipate the economy remaining stable or becoming more stable over the next six months, while just under 24 percent anticipate the economy becoming less stable.
In April prices for aluminum, steel, copper, and air fares were up in price.
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University’s School of Business Administration and the Institute for Supply Management – Southeast Michigan.
The full PMI report for April can be found at http://www.ism-sem.org/resources/files/Report-on-Business--April-2014.pdf
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. Visit their website at http://www.ism-sem.org.
Wayne State University is a premier urban research institution of higher education offering 370 academic programs through 13 schools and colleges to nearly 29,000 students. The School of Business Administration offers AACSB accredited programs at the bachelor, master and doctoral levels. Learn more at www.business.wayne.edu.