DETROIT- The Southeast Michigan Purchasing Managers Index dropped sharply in June, to 49.2, after having reached a six-month high of 61.2 in May, perhaps reflecting a leveling off of business activity, expert says.
The 12 point drop is reportedly due to a decrease in the New Orders Index (from 68.0 to 47.6), Finished Goods Inventory Index (from 44.0 to 33.3) and the Employment Index (from 66.7 to 57.1).
?This is the first time since August 2012 that the Southeast Michigan PMI has fallen below 50,? said Timothy Butler, associate professor supply chain management at Wayne State?s business school. ?It?s likely the drop is only temporary and may simply be reflective of a ?leveling out? of the prior months? activity. PMI values above 50 generally indicate an expanding economy, and the three month average remains favorable at 55.2.?
