DETROIT (WWJ) — The Southeast Michigan Purchasing Managers Index for December is 50.6, down from 58.3 in November, indicating a slowdown in economic expansion.
The decline brought the three-month average down to 57.3.
The Southeast Michigan PMI is a diffusion index with a midpoint of 50. A group of corporate purchasing managers is asked monthly if a variety of economic indicators, such as hiring, new orders and production, are the same, higher or lower than a month ago. Those answering higher push the index above 50, those answering lower push it below 50. Thus, PMI values above 50 suggest economic growth, and the higher above 50, the faster the growth, while values below 50 suggest recession.
“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 University’s School of Business…
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