DETROIT-- Reflecting a sustained economic upswing, the Southeast Michigan Purchasing Managers Index (PMI) surpassed November's PMI of 56.8 to record a strong year-end finish of 64.2 for December. Over the last six months the PMI has finished near or above 55. A PMI value above 50 generally suggests economic growth.
"Contributing factors that lead to December's increase include a number of indices," said Timothy Butler, associate professor of supply chain management at Wayne State's School of Business, who interpreted this month's results. "Specifically, increases in the Production Index, New Orders Index, Employment Index and the Finished Goods Index lead the economic growth for the month."
The positive outlook toward the economy is expected to continue as 83 percent of this month's respondents believe the economy will remain stable, while 17 percent indicated they expect Southeast Michigan economy to become more stable over the next six months.
In December, respondents reported steel, forgings, aluminum, and zinc were up in price, while petroleum and copper went 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 December can be found at http://www.ism-sem.org/resources/files/Report-on-Business-December-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.