Manufacturing activity at foreign-owned companies in Georgia remained strong for the first quarter of 2012, according to the Econometric Center at Kennesaw State University's Michael J. Coles College of Business.

The Georgia International Business Index (GIBI) — a reading of economic activity in the state's foreign-owned manufacturing sector —  was down 9.4 points in the third quarter, to 50.9, with new orders, production, employment, and capital spending all decreasing.

Highlights of the first quarter GIBI include:

• New orders dropped 10.1 points to 42.9
• Production dipped 5.3 points to 53.6
• Employment was down 9.9 points to 60.7
• Capital spending fell 12.4 points to 46.4
• Imports as a percent of total purchasesshrunk 4.2 percent to 35.5 percent

The GIBI provides a snapshot of the activity of foreign-owned manufacturers in the state on a quarterly basis. A GIBI reading above 50 indicates that manufacturing activity is expanding; a reading below 50 indicates it is contracting.

The Georgia GIBI reading is a composite of four components — new orders, production, employment and capital spending. Other collected information includes exports and imports as a percent of sales.

The GIBI, compiled from a quarterly surveys of foreign-owned manufacturers based in Georgia, is the earliest indicator of market conditions in this sub-sector of manufacturing. The GIBI offers a closer measure of foreign-owned manufacturing activity as a subset of overall manufacturing in Georgia. Its value lies in its timeliness and sensitivity to variables such as interest rates, global markets and other economic changes.