Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 2, 1994 TAG: 9402020072
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Short
The National Association of Purchasing Management's widely followed monthly survey bolstered other evidence that the strong economic expansion in the final three months of 1993 surged unabated into 1994.
The executives who buy supplies for America's factories reported healthy increases in new and backlogged orders, exports and deliveries; shrinking inventories; and the most stable employment since May 1992.
However, the survey also contained evidence that inflation was heating up, with manufacturers' prices rising at the highest rate since November 1990.
The group said its monthly index of manufacturing activity surged to 57.7 percent in January from 57.1 percent in December. It was the highest level since a 58.2 percent reading in July 1988.
The index is based on survey results culled from the group's 35,000 members nationwide. An index that exceeds 50 percent indicates the manufacturing economy is expanding, while a reading below 50 percent indicates it is shrinking. The index has exceeded 50 percent since September.
"It's obviously a reflection of manufacturers' faith that they can raise prices, an indication that business is strong," said Robert Bretz.
At the same time, he said, such increases can presage a rise in consumer inflation six to eight months later.
by CNB