Two months of good economic news from WSU

Last month, the news from Wayne State University was good: Economy experiencing third month of continued growth according to Southeast Michigan Purchasing Managers Index.
October 3, 2013

DETROIT— The Southeast Michigan Purchasing Managers Index (PMI) for September is 59.9, reflecting a slight dip from 60.2 in August, but still providing strong evidence of an expanding economy with a three month average of 57.7.  A PMI value above 50 generally suggests economic growth.

“September marks the third consecutive month of increased economic activity throughout Southeast Michigan,” said Nitin Paranjpe, a supply chain faculty member at Wayne State’s School of Business Administration who interpreted this month’s results.   “Contributing to the drop in September’s PMI was a reduction in production by about four points to 64.6 from 68.5 in August, and employment which fell about five points to 54.2 for the month,” Paranjpe said.

The six-month outlook, according to respondents, is generally positive with 75% expecting the economy to remain the same or become more stable.  However, continuing concerns among them include the impact of the Affordable Care Act, the federal debt ceiling issue and concerns about inflation.

This month, it was even better: October Southeast Michigan Purchasing Managers Index shows sharp upswing to 63.1, signaling continued growth in economy.
November 6, 2013

DETROIT— The Southeast Michigan Purchasing Managers Index (PMI) for Oct. is 63.1, up from 59.9 in Sept., raising the three-month average for the economy to a robust 61.1.  A PMI value above 50 generally suggests economic growth.

“Over the last fourteen months, the PMI has come in at 50 or above 13 times,” said Timothy Butler, associate professor of supply chain management at Wayne State’s School of Business Administration, who interpreted this month’s results.   “October’s numbers confirm that the Southeastern Michigan economy continues to strengthen,” Butler said.

Just over 75% of respondents report their expectations are for the economy to remain the same or become more stable, though several respondents reported upcoming programs may require closure for tooling and the short term government shutdown caused many CEOs to put things on temporary hold.

Prices for copper, plated steel, travel (air fare and related services), glue and corrugated materials were up in October.  Down in price were resin and petroleum.

This is great news for Business as Usual.  Too bad these aren't Business as Usual times.  Just the same, I think I should break out Professor Farnsworth.