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SLIGHT MOMENTUM SLIP IN NOVEMBER REPORTED BY DETROIT PURCHASING MANAGERS

 DETROIT, Dec. 1 /PRNewswire/ -- The November survey of the National Association of Purchasing Management-Metro Detroit (NAPM-MD) compiled by Comerica Bank reported a composite index of business conditions of 60.0, representing a loss of 2.1 points from October's level of 62.1. Year- to-date, the index has averaged 57.5, up 6.9 percent from the comparable 11-month average in 1992 (53.8).
 Comment
 "November's report is encouraging because it continues to reflect strength in production, new orders, and employment in both the auto and non-automotive sectors," said David L. Littmann, first vice president and senior economist at Comerica Bank in Detroit.
 "The problem for the overall index in November stemmed mainly from a major unwinding of inventories. Survey respondents, both auto and non- auto, cited the spinning down of inventories to the second lowest level of the year as the principal cause of the slight momentum slip in November. However, if new orders and employment remain anywhere near current levels in the months ahead, renewed inventory building will give a powerful upward kick to both production and price components of the index."
 Items in short supply during November included multiple steel products and stampings, IBM personal computers, network server equipment, and methanol. Capacity constraints are emerging.
 Additional Note
 November was the first NAPM-MD report to document specific production improvements related to NAFTA's approval; it was also the first survey in several years with an absence of negative comments on the economy.
 AUTO NON-AUTO TOTAL
 NOV. OCT. NOV. OCT. NOV. OCT.
 NAPM-MD Index 66.3 72.1 54.3 56.4 57.5 62.1
 Production 66.7 65.4 65.4 66.0 65.8 71.8
 New Orders 66.7 82.1 57.7 56.0 60.5 65.4
 Inventories 45.8 82.1 43.8 50.0 44.4 61.5
 Employment 66.7 67.9 59.6 54.2 61.8 59.2
 Vendor 33.3 28.6 40.4 44.0 38.2 38.5
 Performance
 Prices 79.2 57.1 63.5 62.0 68.4 60.3
 Weighting 31.6 35.9 68.4 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- 12/1/93
 /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

KE -- DE014 -- 9268 12/01/93 12:18 EST
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Date:Dec 1, 1993
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