GRAND RAPIDS – The West Michigan Purchasing Managers index posted strong growth in October, lead by the growing in new orders.
The survey, compiled by Brian G. Long, director of Supply Management Research in the Seidman College of Business at Grand Valley State University, showed the following results:
The index of business improvement, called new orders, rose to +15, up from +6. The production index advanced to +13, up from +2. However, the employment index flattened to 0 from +10. The farther the index is above zero, the more corporate purchasing managers who participated in the survey answered that the indicators were higher. Figures below zero indicate that more managers answered that the indicators were down from a month earlier.
?The resumed resurgence of auto sales has resulted in some new quoting opportunities for our local auto parts suppliers,? said Long. ?Optimism is growing over the 2014 model year. Meanwhile, the office furniture firms reported a slight uptick in activity in October, but the reports from the industry?s Tier I suppliers and some of the smaller firms were flat. For industrial distributors, the reports were mixed, although the bias, for whatever reason, was to the down side. The reports from the capital equipment firms were generally positive. Overall, most firms remain stable and profitable.?
Long said local economic implications of the Affordable Care Act have started to retard employment growth. He said smaller firms are scared by the complexity of the new requirements and taxes and are not hiring or expanding as they should.
The Institute for Supply Management survey is a monthly survey of business conditions that includes 45 purchasing managers in the greater Grand Rapids area and 25 in Kalamazoo. The respondents are from the region?s major industrial manufacturers, distributors and industrial service organizations. It is patterned after a nationwide survey conducted by the Institute for Supply Management.
