Georgia Purchasing Manager s Index Report Furnished by Roger Tutterow, Ph.D., Kennesaw State University Econometric Center April 3, 2017 National, Regional and State manufacturing sectors continued their expansion in March. Local strength reflects strong gains in new orders and current production. National PMI slips marginally, but still consistent with expansion. PMI Georgia, PMI Southeast, and PMI National Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Mar - Feb PMI GA 53.5 60.0 55.6 52.0 63.1 72.4 +9.3 PMI Southeast 55.1 57.9 53.8 52.1 64.3 68.5 +4.2 PMI National 51.9 53.2 54.5 56.0 57.7 57.2-0.5 Change In Percent of Georgia Participants Reporting Higher, Same and Lower MARCH - FEBRUARY Higher Same Lower New Orders 32.4-32.0-0.4 Production 21.0-20.2-0.7 Employment 22.4-22.4 0.0 Deliveries -14.0 8.1 5.9 Finished Inventory 34.2-33.1-1.1 Commodity Prices 27.2-33.1 5.9 1 of 5
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INDUSTRIAL PRODUCTION REPORT Industrial production was unchanged in February following a 0.1 percent decrease in January. In February, manufacturing output moved up 0.5 percent for its sixth consecutive monthly increase. Mining output jumped 2.7 percent, but the index for utilities fell 5.7 percent, as continued unseasonably warm weather further reduced demand for heating. At 104.7 percent of its 2012 average, total industrial production in February was 0.3 percent above its level of a year earlier. Capacity utilization for the industrial sector declined 0.1 percentage point in February to 75.4 percent, a rate that is 4.5 percentage points below its long-run (1972 2016) average. COMMENTS FROM SURVEY PARTICIPANTS REGARDING CONDITIONS THAT AFFECT PURCHASING OPERATION Specific commodities UP IN PRICE were: " Steel, Galvanizing, some steel sheet and plate products, plastic resin, corrugated boxes, plastics, polyethylene and titanium dioxide, carbon plate, aluminum products, stainless steel products, cartons, urethand foam, wood and metal finish materials, steel, castings with ferro chrome, natural Kraft paper, white top linerboard, natural linerboard, metals, SS, synthetic rubber, zinc oxide, carbon black, carbon steel plate products, paper, film, steel and aluminum sheet, food ingredients, PET resin, #2 fuel oil, corrugated products, high performance paper, pine (for pallets), stretch film, hydrochloric acid, ammonia, methanol, caustic soda, stainless steel, plastic resins, corrugated/paper products, copper, galvanized steel" Specific commodities DOWN IN PRICE were: "Plastic material, fuel, natural gas, urea." Items in Short Supply- Specific commodities, materials or finished products I buy that were in short supply last month are: "Titanium dioxide, labor, Kraft paper, PMDI, 72" wide stainless steel." Buying Policy - Report here any change during the last month, versus the prior month, in the number of days ahead you are committing for purchases of production materials, MRO supplies and capital spending: "Buying ahead of the increases, i.e. buying more stock before prices increases go effect." "Reduction in overall inventory planning. Due to limited storage space available." General Remarks - Give your frank opinion on any conditions, local, national or international, that affect your purchasing operation or your company s outlook: "Industry optimism is very good. i am axious to see when the results meets the optimism. Not much collaboration to get things done to help our economy." "Our head count was down due to a death and a resignation. We are looking to replace both." "We expect continued upward pressure on the costs of raw materials and freight to deliver them." "It is hard to get dependable labor." "Economy is strong." "Current Business Optimism and Speculation is driving up commodity pricing artificially." "Fears for inflationary increases in cost to our products." "Same as previous month." "We are experiencing more competiveness from our competition." "Business good for 1st quarter 2017." "Business is booming - greater than 20% over last year." 5 of 5