Georgia's Manufacturing Slumped In May, But Outlook Still Positive
Manufacturing activity in Georgia dropped in May, but analysts still see the glass as half-full.
That's down about six points from the prior month.
But Dr. Don Sabbarese, the director of KSU's Econometric Center, says things still look good overall.
He says to understand the drop in May, you have to refer to the higher numbers in March and April.
"Part of what happened in the prior months....it was more of a catch-up. And so part of the strength of really strong numbers in those months was the slow-down that took place in the earlier months."
According to KSU, manufacturing in Georgia was slow in those months, largely because of the snow and ice storms that struck the state in the beginning of the year.
Sabbarese also says the latest PMI report shows many of the manufacturing companies surveyed by KSU are in good shape.
"Almost 50% of our participants actually said their new orders went up. So that's still a very strong footing for the manufacturing sector," says Sabbarese.
The May PMI data slowed showed commodity prices increased 4.5 points.
That's nearly 11 points higher than its six month average.