By Alex Walsh | awalsh@al.com al.com
( June 05, 2013 at 7:00 AM, updated June 05, 2013 at 7:01 AM)
New research confirms the notion that Alabama’s manufacturing economy is expanding, despite a national slowdown.
The Purchasing Managers Index (PMI) for Alabama was 55.7 in May, according to KennesawStateUniversity’s EconometricCenter. KennesawState tracks the PMI for each of six southeastern states. A PMI above 50 indicates that manufacturing is expanding in a certain area; the nationwide PMI for May was 49.
For a state that needs to see its job growth ramp up, perhaps the best news from May’s PMI report was that manufacturers were expanding hiring in Alabama. Expanded hiring in Alabama helped boost manufacturing activity throughout the southeast, according to KennesawState’s report.
Despite the increases, however, there were some signs of softness. Both new orders and production decreased in Alabama, according to the May report.
Don Sabbarese, director of the EconometricCenter at KennesawState, says the report offered a mix bag of news when considered in its entirety. “Manufacturers are taking a wait-and-see approach to the current second quarter slowdown,” Sabbarese said in the release.