DETROIT—In February 2016, the Southeast Michigan Purchasing Managers Index (PMI) dropped a significant 5.1 points to 52.0, the lowest value in the past six months. The three-month average dipped a point and a half, from 56.3 to 54.6.
“Index components continue to support an optimistic outlook,” said Timothy Butler, associate professor of global supply chain management in Wayne State University’s Mike Ilitch School of Business, who interpreted this month’s results. “As the PMI remains above 50, the implication is that the southeast Michigan economy continues to expand modestly.”
The vast majority of survey respondents indicated that the economy will remain stable or become more stable over the next six months. Only 6.5% anticipated less economic stability.
While the employment index also lost a significant 10 points in February, the commodity price index rose four points to 48.4. However, a value less than 50 means respondents are still not experiencing overall price increases.
“Specific commodities such as oil, petroleum, information technology servers and personal computers are actually falling in price,” said Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and an Institute for Supply Management board member. “And, although some respondents expressed concerns about the presidential election’s impact on health care, we’re seeing optimism in terms of automotive orders.”
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_February-2016.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.
The Wayne State University Mike Ilitch School of Business prepares students for challenging and rewarding careers, advances the boundaries of scholarly and practitioner knowledge, and enhances the economic vitality of the city of Detroit, the state of Michigan and beyond through its programs, research and community engagement. Established in 1946, the business school was renamed in 2015 in recognition of a $40 million gift from Mike and Marian Ilitch. Thanks to this lead investment, a new state-of-the-art building is slated to open in the heart of the District Detroit in 2018, and entrepreneurial programming and collaboration with city businesses are expanding. For more information, visit ilitchbusiness.wayne.edu.