Manufacturing activity in Georgia was down in December, ending 2011 more than 6 points down for the year, accordingto the Econometric Center at Kennesaw State University’s Coles College of Business. 

Georgia’s Purchasing Managers Index (PMI)  —  a reading of economic activity in the state’s manufacturing sector  —  dropped 5 points in December, to 47.4 –– a reading below 50 indicates a contraction –– after a rebound of 9.2 points in November. The PMI dropped 6.4 points from 53.8 in January 2011.

New orders and production declined, with six-month averages of 50.6 and 50.9, respectively.

“As we start the new year, there is no clear trend for 2012,” said Don Sabbarese, professor of economics and director of the Econometric Center at the Coles College of Business.  “2011 was a year of two separate trends: We saw growth in new orders and production during the first six months, but they were down significantly in the second half. Manufacturers are still trying to sort out what this means for 2012.”

Other highlights of the December PMI include:

·         New orders decreased 8.1 points, to 50.0

·         Production decreased 7.8 points, to 46.3

·         Employment remained flat at 50

·         Supplier delivery time decreased 1.9 points, to 48.1

·         Finished inventory decreased 7.4 points, to 42.6

·         Commodity prices were up 4.1 points, to 50.0