Georgia manufacturing’s new orders and production adjusted in April, after reaching unusually high levels, according to the Purchasing Managers Index released by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.
 
April’s PMI of 59.4 registered 1.5 points higher than its six-month average of 57.9. New orders and production registered readings of 62.5 and 59.4 respectively.
 
Employment increased 3 points to 62.5; with 31 percent of respondents reporting increased hiring. Employment’s apparent strength bodes well for manufacturing, as it remains strong regardless of new orders and production’s volatility. Commodity prices jumped 20.4 points to 65.6, 24.6 points above their six-month averages. The recent rise in crude oil prices may be somewhat responsible for this unusual jump.
 
The strong drop off of new orders and production at first glance might be a concern, but April levels remain strong and employment’s upward trend suggests that respondents are fairly confident that current conditions are sustainable. In addition, 44 percent of respondents expect production to be higher in the next three to six months, according to Don Sabbarese, director emeritus of the Econometric Center and professor of economics at Kennesaw State University.
 
The National PMI reading of 50.8 is a decrease of 1.0 point for April. The National report identified 11 industries expanding versus 12 of 18 industries in March.  
 
Summary of highlights from the April PMI:

-New orders down 11.3 points to 62.5, 2.5 points above its six-month average

-Production down 16.8 points to 59.4, 1.7 points below its six-month average

-Employment up 3.0 points to 62.5 points, 6.8 points above its six-month average

-Supplier delivery down 3.3 points to 56.3, 3.1points above its six-month average

-Finished inventory down 8.0 points to 56.3 points, 8.0 points below its six-month average

-Commodity prices up 20.4 points to 65.6, 24.6 points above its six-month average