Georgia economy still searching for stability

Florida Times-Union

Mixed signals this week suggest the Georgia economy hasn't found its footing.

Factory managers are reporting more bullish signs in a survey released this week, but lenders say activity remains sluggish.

The state's purchasing managers index, released Monday by the Econometric Center at Kennesaw State University, rose 4.3 points to 48.9. A reading of 50 or better indicates economic expansion.

The national index stands higher at 55.7, rising 3.1 points, but the Georgia index is now moving in the same upward direction after falling in August and September. The university compiles the index by surveying plant executives, and during October, 32 percent predicted production increases in the next three-six months while 17 percent reported expectations of lower production.

"Manufacturing output increased at an annualized rate of 7.7 percent for the third quarter. Even after controlling for motor vehicle production, the increase was impressive," notes index author Don Sabbarese, director of the Econometric Center.