DETROIT - The Southeast Michigan Purchasing Managers Index (PMI) rose one point from September to October, from 57.6 to 58.4. The PMI's 3-month average was relatively unchanged at 57.6. While a PMI value above 50 generally suggests an expanding economy.
According to Timothy Butler, an associate professor of global supply chain management at Wayne State University's Mike Ilitch School of Business, who interpreted this month's results, this month's index was paced by strong showings in new orders and production.
"Even though there was a decline in the finished goods index, the strong showings in new orders and production allay any concerns I would have about that," Butler said.
According to Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and an Institute for Supply Management board member, survey participants remain bullish about the Southeast Michigan business environment moving forward despite some lingering concerns about debt in the system and the potential of rising interest rates.
More than 93 percent believe the economy will be either more stable or about the same over the next six months.
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University's Mike Ilitch School of Business and the Institute for Supply Management - Southeast Michigan.
The full report can be found at http://www.ism-sem.org/resources/files/Report-on-Business_October-2015.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 Mike Ilitch School of Business offers AACSB-accredited programs at the bachelor, master and doctoral levels. Learn more at http://ilitchbusiness.wayne.edu.