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PURCHASING MANAGERS REPORT BEST CONDITIONS IN FIVE YEARS

 DETROIT, Nov. 1 /PRNewswire/ -- An October survey of the National Association of Purchasing Management - Metro Detroit (NAPM-MD) compiled by Comerica Bank shows the southeastern Michigan industrial economy at its highest level in five years.
 The composite index of business conditions reached a level of 62.1 in October, up 4.6 points from 57.5 in September. The October 1992 reading was 53.0.
 Comment
 "October's purchasing management report gives evidence of growing momentum, particularly in the automotive area," said David L. Littmann, first vice president and senior economist with Comerica Bank in Detroit. October's gain was the third consecutive monthly advance of the overall conditions index, and it also represents the strongest report since October 1988 -- five years ago. Gains in new orders, production, and inventories were especially impressive among the October automotive respondents, and both auto and non-auto respondents cited improved employment conditions. Prices also continued a pattern of firming.
 Items reported in short supply during October included hydrochloric acid, methyl isobutyl ketone, gray iron and other castings, linings, machine parts, common carrier trailers, steel, and some computer components such as integrated circuits, memory chips and notebook modems.
 AUTO NON-AUTO TOTAL
 SEP OCT SEP OCT SEP OCT
 NAPM - MD Index 66.3 72.1 54.3 56.4 57.5 62.1
 Production 81.8 82.1 69.4 66.0 72.6 71.8
 New Orders 72.7 82.1 54.7 56.0 59.3 65.4
 Inventories 77.3 82.1 59.4 50.0 64.0 61.5
 Employment 68.5 67.9 45.3 54.2 51.2 59.2
 Vendor 30.0 28.6 46.9 44.0 42.9 38.5
 Performance
 Prices 70.0 57.1 53.1 62.0 57.1 60.3
 Weighting 25.6 35.9 74.4 64.1 100.0 100.0
 Comerica Bank compiles the NAPM-MD survey report from monthly responses of local purchasing managers belonging to the 500-member NAPM-MD (National Association of Purchasing Management-Metro Detroit). The report indicates whether fundamental measures of the economy are stronger, weaker, or unchanged from the prior month.
 The Composite Index is a seasonally adjusted weighted average measure of new orders and production activity along with employment, inventories and the promptness of supplier company deliveries. The index ranges from 0 to 100. A reading below 50 generally means conditions are deteriorating; levels above 50 denote expansion. The Composite Index and its components have been tabulated since October 1985.
 -0- 11/1/93
 /CONTACT: David L. Littmann, first vice president and senior economist of Comerica Bank, 313-222-7241/
 (CMA)


CO: Comerica Bank ST: Michigan IN: FIN SU: ECO

ML -- DE013 -- 9156 11/01/93 12:27 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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