December 1, 2014

Economic confidence continues as Southeast Purchasing Managers Index reaches 56.8 in November

DETROIT-- The Southeast Michigan Purchasing Managers Index (PMI) for November is 56.8, up from 54.7 in October. Over the last five months the PMI has finished near or above 55. A PMI value above 50 generally suggests economic growth. Increases in several key indices contributed to the strong finish.

"In November, the Production Index rose to 55.9 from a low of 40 in October and the Employment Index grew as well, from 63.3 to 64.7," said Nitin Paranjpe, a supply chain faculty member at Wayne State's School of Business, who interpreted this month's results. "With regard to the Employment Index, we can see that Michigan's labor market is finally enjoying a prolonged rebound from the Great Recession supported, in part, by strong automobile sales for the month."

Demonstrating tremendous confidence, 100 percent of the purchasing manager's responding to this month's survey indicated that they expect Southeast Michigan economy will remain stable or become more stable over the next six months.

In November, respondents reported natural gas, resins, airlines, and stainless steel were up in price, while crude oil was down 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 November can be found at http://www.ism-sem.org/resources/files/Report-on-Business-November-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 offers AACSB accredited programs at the bachelor, master and doctoral levels. Learn more at www.business.wayne.edu.