The Atlanta Fed's SouthPoint offers commentary and observations on various aspects of the region's economy.
The blog's authors include staff from the Atlanta Fed’s Regional Economic Information Network and Public Affairs Department.
Postings are weekly.
Regional Manufacturing Index Jumps in January
Reports from the Atlanta Fed's business contacts indicated that manufacturing in the Southeast improved in early 2013. In particular, information from auto producers and firms that produce goods for the energy sector remained positive.
One of the data tools we employ here at the Atlanta Fed to track manufacturing activity in the region is the Southeast purchasing managers index (PMI). The Southeast PMI is produced by the Econometric Center at Kennesaw State University and provides an analysis of the most current market conditions for the manufacturing sector in Georgia, Florida, Alabama, Tennessee, Mississippi, and Louisiana. The index is based on a survey of representatives from companies in those states regarding trends and activity of new orders, production, employment, supplier delivery time, and finished goods. A reading on this index above 50 represents an expansion in the manufacturing sector, while a reading below 50 indicates a contraction.
In January 2013, the Southeast PMI increased 5.5 points to a reading of 51.9—its highest level since last September (see the chart). All subindices logged increases as well, in particular new orders, production, and employment. New orders saw the most substantial increase, jumping 12.6 points from December to January to 55.3. Production rose 9.1 points to 50.9, and the employment measure recorded a 3.4 point rise to 51.8.
One of the most encouraging aspects of the January survey reflects the purchasing managers' outlook on production expectations over the next three to six months. While this question is not a component of the overall PMI, this information provides input from those closest to the industry on what activity is expected in the months ahead. Among survey participants, 57 percent expect production to be higher in the next three to six months, versus 47 percent from the prior survey period.
By Amy Pitts, a senior REIN analyst in the Atlanta Fed's Nashville Branch
TrackBack URL for this entry:
Listed below are links to blogs that reference Regional Manufacturing Index Jumps in January:
- Will Retail Sector Maintain GDP Momentum?
- A Timely Talk with Energy Professionals
- A Closer Look at Earnings in the Southeast
- Has Southeast Manufacturing Found Some Optimism?
- WHAT WAS I THINKING?!?!
- Southeast Commercial Construction Continues Gathering Steam
- Employment Momentum Grows in Florida and the Retail Sector
- Conditions Soften for Southeastern Housing
- Music City Is Playing Your Song
- Signs Point Up for Regional Manufacturing
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- Banks and banking
- Beige Book
- Business Cycles
- Commodity Prices
- Consumer Savings
- Data Releases
- Disaster recovery
- Economic conditions
- Economic Growth and Development
- Economic Indicators
- Fiscal Policy
- Gulf Coast
- Health Care
- Holiday Sales
- Labor Markets
- Local Economic Analysis and Research Network (LEARN)
- Monetary Policy
- Natural Disasters
- New Orleans
- Oil Spill
- Real Estate
- Sales Tax