Purchasing managers index rises in September
The Southeast Michigan Purchasing Managers Index rose one point in September to 57.6, despite a significant drop in commodity prices that could indicate a period of economic deflation, according to Nitin Paranjpe, a faculty member specializing in supply chain management at Wayne State University’s School of Business. “If decreases in commodity prices continue or expand and begin to cause deflation, it could make the job of the Federal Reserve more difficult,” Paranjpe said in a press release. He said that the Fed typically shoots for a target inflation rate of 2 percent. The index’s three-month average is 57.3. While a value above 50 generally suggests economic growth, this is the first time the three-month average has dipped below 60 since March. Survey participants remain bullish about the Southeast Michigan business environment. More than 88 percent believe the economy will be either better or about the same over the next six months. Production, employment and new orders indexes all remained high heading into the fall. The index is a research partnership between the business school and the Institute for Supply Management - Southeast Michigan.
