Economic Indicator Shows GA Manufacturing Sector Struggling

By Jim Burress

Atlanta, GA – Despite signs that the national economy is beginning to recover, a leading indicator of Georgia's economy shows continued weakness here. Each month, the Econometric Center at Kennesaw State University releases its Purchasing Managers Index report, a barometer of manufacturing strength in the state.

For November, Georgia's index was 43.5 compared to a national average of 53.6. Several factors make up the score, but new orders are the main driver of the rating.

Georgia's low number means sustainable growth in the manufacturing sector remains dicey, says Don Sabbarese, director of KSU's Econometric Center.

“Manufacturers are not looking to hire anybody, and certainly this month they've drastically drawn down their inventories,” he said.

Sabbarese says he thinks the worst is behind us, but the numbers show a recovery is slow in coming.