In the Media Archive
Index: Local economy stumbled in August September 06, 2012
By Tom Henderson
The Southeast Michigan Purchasing Managers Index fell sharply in August to 45.7, down from 54.6 in July, to hit the lowest total in 31 months. A value of above 50 indicates economic growth, and below 50 indicates economic contraction. "The components of the PMI that are responsible for the declining score are new orders and production, which both had an index value of 41.9," said Timothy Butler, associate professor of supply chain management at Wayne State University's business school. The index is a research partnership between the Southeast Michigan chapter of the Institute for Supply Chain Management and WSU's School of Business Administration.
By Matt Roush
The Southeast Michigan Purchasing Managers Index came in at 45.7 in August, declining from 54.6 in July. The Index dropped for the second consecutive month, falling below 50 for the first time since December 2011. August marks the lowest PMI in 31 months, since January 2010, when the Index was 45.2. “The components of the PMI that are responsible for the declining score are new orders and production, which both had an index value of 41.9,” said Timothy Butler, associate professor of supply chain management at Wayne State’s business school who analyzed the survey data. The Commodity Price Index value in August suggests sharply rising prices, according to Ken Doherty, assistant vice president for procurement and strategic sourcing at Wayne State University and a member of the Institute for Supply Management. “The Commodity Price Index was below 50 during June and July, indicating declining prices overall, but in August, it increased to 61.3, suggesting a spike in prices,” he said.