Purchasing Index Points to Good News for Metro Detroit

Posted on February 1, 2011

The Southeast Michigan Purchasing Managers Index climbed 2.1 points in December to 56.3, marking the 11th straight month of economic expansion in Southeast Michigan.

A score above 50 represents an expanding economy.

More than one-third of purchasing managers who responded to the survey — conducted by the Wayne State University School of Business Administration and the Southeast Michigan chapter of the Institute for Supply Management — reported that their organizations increased hiring in December.

A decrease in finished-goods inventories and increasing commodity prices also pointed to increasing demand and higher economic activity.

When asked about the stability of the local business environment over the next six months, 38 percent of the purchasing managers said they expected more stability, compared with 14 percent in November. Less than 8 percent thought the economy would be less stable.

The national index for December was 57, the 20th straight month above 50.