DETROIT – Despite The BRexit vote in Great Briton to leave the European Union, the Southeast Michigan Purchasing Managers Index dipped slightly once again in June 2016, the second straight month of decline. The good news is the three-month average remained steady at a robust 60.5. A PMI above 50 is considered an indication of an expanding economy.
“The new orders, production and employment indices helped drive the strong results in July,” said Tim Butler, associate professor of supply chain management in Wayne State University’s Mike Ilitch School of Business, who interpreted this month’s results. The PMI has not fallen below 50 since June 2014, indicating a resilient regional economy.
Still, the area’s purchasing managers are keeping their eyes on potential national and international impacts.
“While survey respondents were overwhelmingly optimistic about the stability of the regional economy, individual respondents still mentioned the potential impacts of things like the recent Brexit vote and – to a greater extent – the fall 2016 election” said Kenneth Doherty, assistant vice president of procurement and strategic sourcing at WSU and an Institute for Supply Management board member.
The Southeast Michigan Purchasing Managers Index (PMI) is a research partnership between Wayne State University’s Mike Ilitch School of Business and the Institute for Supply Management – Southeast Michigan. The full report can be found at http://www.ism-sem.org/resources/files/Report-on-Business_June- 2016.pdf
