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LOCAL PURCHASING MANAGERS REPORT SERIOUS DECLINE FOR NOVEMBER

 LOCAL PURCHASING MANAGERS REPORT SERIOUS DECLINE FOR NOVEMBER
 DETROIT, Dec. 2 /PRNewswire/ -- Summary: November 1991's survey of the National Association of Purchasing Management-Metro Detroit (NAPM-MD) registered a Composite Index (CI) of business conditions of 43.2, representing an 8.8-point plunge from October's reading of 52.0. By comparison, the CI stood at 40.4 in November 1990.
 Comment: "Traditionally, November is a bellwether month for gauging the auto and industrial outlook in the ensuing year," said David L. Littmann, first vice president and senior economist of Manufacturers National Corporation (NASDAQ-NMS: MNTL). "In this case, the latest survey is not encouraging. The auto-sector respondents, in particular, registered their most pessimistic assessment of monthly developments (30.5) since a war-depressed February (26.4). Fortunately, the non-auto respondents, representing two-thirds to three-quarters of the survey, continue to offer a less volatile view. Nevertheless, the non-auto component of the survey also noted weaker conditions in November, compared with October. Higher inventories among the non-auto group reflected weaker new order activity."
 Littmann noted that comments offered by respondents were uniformly downbeat: "The prospects for sustained recovery have generally been shoved into the second quarter of 1992."
 Items in Short Supply: The list of items reported to be in short supply was considerably smaller than in October. The November list included castings, coated products, some large valves and electronic components, fasteners and hydro fittings.
 NOVEMBER 1991
 AUTO NON-AUTO TOTAL
 NAPM-MD Index 30.5 47.2 43.2
 Production 34.6 47.6 44.4
 New Orders 23.1 47.6 41.8
 Inventories 26.9 42.9 39.1
 Employment 23.1 39.3 35.5
 Vendor Performance 42.3 45.2 44.5
 Prices 46.2 50.0 49.1
 Weighting 23.6 76.4 100.0
 Manufacturers National Corporation compiles the NAPM-MD survey report from monthly responses of local purchasing managers belonging to the 500-member NAPM-MD. The report indicates whether fundamental measures of the economy are stronger, weaker or unchanged from the prior month.
 The CI 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 zero to 100. A CI below 50 generally means conditions are deteriorating; CI levels above 50 denote expansion. The CI and its components have been tabulated since October 1985.
 -0- 12/2/91
 /CONTACT: David L. Littmann of Manufacturers National Corporation, 313-222-7241/
 (MNTL) CO: Manufacturers National Corporation ST: Michigan IN: FIN SU: ECO


SB -- DE021 -- 8490 12/02/91 16:11 EST
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Date:Dec 2, 1991
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