Global supply chain management faculty at Wayne State University's School of Business Administration compile the index monthly from a survey of Institute for Supply Management-Southeast Michigan members. The index tracks changes in production, new orders, inventories, employment, vendor deliveries and commodity prices.
Employment declined for the third straight month, down to a 36 rating from a stable 50 in October. [audio clip 2] [video clip 2]
"Purchasing managers are not indicating any new hiring, so even if layoffs were to temper there would be no new growth in employment levels," said Nitin Paranjpe, an economist and faculty member in Wayne State's business school. "Even if the economy were to stabilize, I don't see any indicator that employment levels in Southeast Michigan would actually increase," he said.
Other indicators, such as production and new orders, are down, pointing to continued economic uncertainty. However, inventories are also down, which may signify mild increases in demand. [audio clip 3] [video clip 3]
About 60 percent of survey respondents believe the regional economy will maintain its current status, while almost 31 percent anticipate more stability in economic conditions. Some respondents display unease, concerned about business and consumer credit availability and unemployment. [audio clip 4] [video clip 4]
The full January Purchasing Managers Index report is available online at
http://www.ism-sem.org/uploaded_pics/pdf-20100203084825.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.
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.