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PURCHASING MANAGERS REPORT IMPROVED CONDITIONS

 DETROIT, Sept. 2 /PRNewswire/ -- The August survey of the National Association of Purchasing Management-Metro Detroit (NAPM-MD) compiled by Comerica Bank reported a small increase after two consecutive months of declines. The index recorded a 5.5 point increase in August to 53.7, compared with a 49.5 reading in August of 1992.
 Comment
 "The August survey suggests that the local economy recouped a portion of the forward momentum that had been lost over the last several months," said James M. Bills, assistant vice president & economist at Comerica Bank. "Purchasing managers in both the automotive and non-automotive sectors reported an acceleration in the pace of economic activity during the month."
 Bills described the local economy as neutral to slightly positive. "While production in the automotive sector remained depressed for the second consecutive month during August, new orders recorded a significant rebound to an extremely positive reading of 57.7. If new orders continue to exhibit this type of strength in the coming months, strong gains in production will follow. This would be extremely positive for the local economy," Bills said.
 Items in short supply during August included grey and ductile iron castings, brake linings, flat roll steel and microcomputers.
 NAPM-Metro Detroit respondents again cited concerns about the president's economic plan, the labor negotiations between the UAW and the Big Three, and the downsizing of auto related industries.
 AUTO NON-AUTO TOTAL
 JUL AUG JUL AUG JUL AUG
 NAPM-MD Index 39.9 50.1 51.3 55.0 48.2 53.7
 Production 37.5 42.3 51.6 61.4 47.7 56.3
 New Orders 40.9 57.7 53.2 56.8 50.0 57.0
 Inventories 54.2 50.0 48.4 56.8 50.0 55.0
 Employment 45.8 57.7 56.5 54.1 53.5 55.0
 Vendor 25.0 45.8 43.5 48.6 38.4 48.0
 Performance
 Prices 58.3 69.2 54.8 63.9 55.8 65.3
 Weighting 27.9 26.0 72.1 74.0 100.0 100.0
 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- 9/2/93
 /CONTACT: James M. Bills, Assistant Vice President & Economist, Comerica Bank, 313-222-4829/
 (CMA)


CO: National Association of Purchasing Managers-Metro Detroit;
 Comerica Bank ST: Michigan IN: FIN SU: ECO


SM -- DE023 -- 8418 09/02/93 12:24 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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