Georgia international manufacturing activity climbed during the first quarter of 2014, according to the Georgia International Business Index (GIBI). The quarterly survey was released Tuesday by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.  

The first-quarter GIBI jumped by 13.9 points to 69.6, reversing the 14.8-point drop during the fourth quarter of 2013. According to the report, this increase is due largely to strengths in new orders, production and capital spending among foreign-funded manufacturers. Employment was the only component to decrease by 8.9 points to 60.7, the lowest reading of all four components.  

“There is no doubt that the first-quarter GIBI report captured the weather catch-up effect, which was also experienced in Georgia’s February and March domestic manufacturing activity,” said Don Sabbarese, director of the Econometric Center and professor of economics in the Michael J. Coles College of Business at Kennesaw State. 

“How much of this momentum is related to the delayed demand from the bad weather and how much is related to overall improvement in demand is still to be determined,” he added. According to Sabbarese, the first-quarter GIBI continued to experience volatility over the last three quarters as it reversed the decrease from the fourth quarter of 2013. 

Highlights from the first-quarter GIBI include:

• New orders up 28.8 points, to 75
• Production up 14 points, to 67.9
• Employment down 8.5 points, to 60.7
• Capital spending up 21.2 points, to 75
• Exports as a percent of total sales is down 0.6 of a point, to 11.8
• Imports as a percent of total sales is down 4.2 points, to 43.6

The Georgia International Business Index provides a quarterly snapshot of manufacturing activity for foreign-funded businesses in the state. The survey is a composite of four components — new orders, production, employment and capital spending. A GIBI reading above 50 indicates that manufacturing activity is expanding; a reading below 50 indicates it is contracting. 

The GIBI, compiled from a quarterly survey of manufacturers, is the only indicator of market conditions for foreign-funded manufacturers. Manufacturing, which accounts for 9 percent of total employment, is sensitive to changes in the economy and trends in manufacturing, and reveals differences between domestic and foreign-funded manufacturers. 

The GIBI’s value is in its timeliness and sensitivity to variables such as interest rates, global markets and other economic changes. The Georgia International Business Index provides valuable data used by businesses and government agencies to assist in its analysis of current economic conditions, along with many other data sources, to get a picture of economic activity.