The Southeast Michigan Purchasing Managers Index (PMI) fell from 58.3 to 50.6 in December, indicating a slow-down in economic expansion.
This brings the three-month average down to 57.3. A PMI value above 50 generally suggests economic growth.
“The PMI dropped in December primarily due to a decrease in new orders and production at year’s end,” said Timothy Butler, associate professor of supply chain management at Wayne State’s School of Business Administration, who interpreted this month’s results. “It is important to realize that even though the PMI index declined, it still remains near 50, indicating that the economy maintained relative stability compared to the prior month,” Butler said.