Activity among Georgia’s foreign-owned manufacturers declined significantly in the third quarter, according to the Econometric Center at Kennesaw State University’s Coles College of Business. 

The Georgia International Business Index (GIBI), which tracks foreign-owned manufacturing activity in the state, declined 18.2 points in the third quarter, the index’s first major decline since it was launched in early 2011. The latest reading confirms that foreign-owned manufacturers experienced significant declines similar to those experienced by domestic manufacturers.

Foreign-owned Georgia manufacturers reported significant declines in new orders, production, employment and capital spending, with all variables at their lowest level for 2011. Domestic and foreign-owned manufacturers responded to the third quarter slowdown by lowering production, employment and capital spending. Exports declined sharply.

“Domestic and foreign-owned manufacturer weakness is the result of the broader global economic slowdown,” said economist Don Sabbarese, director of the Econometric Center.

Highlights of the third quarter GIBI include:

• New orders declined 15.8 points, to 50 points

• Production declined 23.7 points, to 50 points

• Employment declined 23.5 points, to 52.8 points  

• Capital spending declined 10.1 points, to 58.3 points

• Exports declined 12.7 points, imports increased 3.3 points

The Georgia GIBI offers a snapshot of international business activity in the state. The quarterly index is calculated using data on new orders, production, employment and capital spending provided by foreign-owned firms doing business in Georgia.

Data on imports, exports and foreign capital investment are also compiled by the Coles College’s Econometric Center but do not go into the GIBI calculation.