PURCHASING MANAGERS REPORT OCTOBER EASING
PURCHASING MANAGERS REPORT OCTOBER EASING DETROIT, Nov. 5 /PRNewswire/ -- The October 1991 survey of the
National Association of Purchasing Management-Metro Detroit (NAPM-MD) registered a Composite Index (CI) of 52.0, a 1.2-point easing from the 53.2 reading in September. By comparison, the CI in October 1990 stood at 42.7, reflecting an auto-industrial sector depressed by uncertainties related to events in the Persian Gulf.
"Between September and October, the auto and non-automotive respondents diverged in their assessment of production and new order activity," according to David L. Littmann, first vice president and senior economist of Manufacturers National Corporation (NASDAQ-NMS: MNTL). "Although automotive respondents cited expansion in most categories of business conditions, nearly all were considerably more muted than the prior month, with the exception of inventories, which surged. This is not a good sign, especially if not reversed in November," Littmann noted. "Non-automotive respondents also recorded modest expansion in production and new orders from the prior month, but highlighted the most contradictory inventory conditions in four months," stated Littmann. At a level of 52.0, Littmann said the recovery of Southeast Michigan's manufacturing-oriented economy just is holding its head above water. "One curious footnote to the October survey is that the overall price diffusion index firmed to a level of 50.0 for the first time in nine months, offering some confirmation that the economy remains in a recovery mode." Nevertheless, Littmann noted that out of 81 replies, 30 respondents added comments on October's survey, 18 of which told about a stagnant or weakening outlook. Items in short supply included corn starch, de-inked trash, some coiled and hot-rolled plate steel, electronic and machined components, and IBM computer processors. OCTOBER 1991 AUTO NON-AUTO TOTAL NAPM-MD Index 58.6 48.5 52.0 Production 66.7 50.9 56.3 New Orders 51.9 53.7 53.1 Inventories 64.8 36.8 46.3 Employment 59.3 38.9 45.7 Vendor Performance 48.1 50.0 49.4 Prices 50.0 50.0 50.0 Weighting 33.3 66.7 100.0 Manufacturers National Corporation compiles the NAPM-MD survey report from monthly responses of local purchasing managers belonging to the 500-member NAPM-MD, 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 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 0 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- 11/5/91 /CONTACT: David L. Littmann of Manufacturers National Corporation, 313-222-7241/ (MNTL) CO: Manufacturers National Corporation ST: Michigan IN: FIN SU: ECO ML -- DE027 -- 1394 11/05/91 16:22 EST
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|Date:||Nov 5, 1991|
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