Power Breakfast: Manufacturing sags in Georgia, Atlanta schools, college costs, airport, debt deal, oil prices

Manufacturing in Georgia — the sector that is supposed to be helping us dig out of this economic mess — is faltering.

July turned out to be another bad month, signaling what is becoming a disturbingly negative trend, AJC reporter David Markiewicz writes.

The Purchasing Manager’s Index declined for the fourth straight month, according to a new report from the Econometric Center at Kennesaw State University’s Coles College of Business, Markiewicz reports.

New orders, production, employment, finished inventory and commodity prices all fell significantly in July from June, Markiewicz writes.

“The drop off was expected, but its magnitude was unexpected,” said Don Sabbarese, director of the Econometric Center.

Georgia’s PMI for July was 50.7. That’s down from 56.9 in June, 64.6 in May, 67.4 in April and 67.6 in March, Markiewicz writes. A PMI reading of more than 50 indicates that manufacturing activity is expanding, while a reading of less than 50 is an indication of contraction.

Meanwhile, manufacturers throughout the U.S. had their weakest growth in two years in July, Associated Press reports.

The Institute for Supply Management said its index of manufacturing activity fell to 50.9 percent in July from 55.3 percent in June, AP writes. The reading was the lowest since July 2009 — one month after the recession officially ended.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

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6 comments Add your comment

Tom E. Gunn

August 2nd, 2011
7:20 am

When will people understand, until NAFTA is repealed their will be NO growth in mfg?

free ride

August 2nd, 2011
8:06 am

Ban cheap imports! Ga companies can’t compete with stuff made in india or china!

No > in manufacturing with this government

August 2nd, 2011
8:12 am

If I was Boeing I should have built my new plant in Mexico, instead of South Carolina. Since Boeing created 3,000 new jobs they are being sued by the federal government for doing so. Boeing would not have been sued if they had opened that plant in any other country.

To free ride

August 2nd, 2011
8:22 am

Your may not know much history but we did that in the 1970’s with the automobile. The government put high tariffs on automobiles, to discourage Japanese imports, and the quality of American automobiles plummeted and the prices skyrocketed.
We live in a global economy, get used to it. Are you telling me you are not smart enough to find a need that someone has and then fill it. You may need to be retrained but I am sure you and”Tom E. Gunn” in the above post are smart enough to meet that challenge, with other Americans.

High corporate tax rates

August 2nd, 2011
8:33 am

Why open a manufacturing plant in the US when more of my profits go to taxes than any other country in the world, and they are talking about increasing them even more. I will just build elsewhere where the rates are lower and there is less uncertainty.

A.S.Mathew

August 2nd, 2011
9:28 am

High Corporate Tax Rates: That is very true. Business people get more
mails from the government about taxes and other unnecessary laws created. Starting a business or operating a business is not a very
peaceful enterprise now. More regulations creates less interest in
business.

To free Ride: That is very true. To jump into a consumption spirit of
only the domestic products will take years to form. Simply consume
less of foreign-made goods, but the problems is to find the U.S. made
goods…hardly anything except food items. We must take an aggresive
stand to export our goods to other countries. The U.S. goods have a
greater demand and name in other countries. Ford sells more cars in India and
China than the Japanese or German cars.