Purchasers See Growth, Inflation

Metro Detroit’s economy has been improving incrementally as shown by a 15-month period of continual growth. All seemed to be looking up for Metro Detroiter’s until a recent drop within the Southeast Michigan Purchasing Managers Index. According to the index, there was a 0.2 drop from April to May (67.9 to 67.7) ending the streak of continuous growth over the period of the last 15 months. The drop is not significant numerically, but still is a lower index than recorded in the previous month of April, leaving room for concern for Michigan manufacturers.

Inflation may be creeping into the economy and Wayne State economist and supply chain faculty expert, Nitin Paranjpe, believes that increases in fuel prices could lead to transportation surcharges according to recent hints given by purchasing managers. “These raw material price increases may start to trickle down to the finished goods market, and we may start to see price increases at the retail level” states Paranjpe.

posted by PAA Online , Friday, June 3, 2011 11:00 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters