Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, June 2, 1995 TAG: 9506020082
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Short
The first pullback by the manufacturing sector since August 1993 surprised economists who were expecting continued, but slower, expansion at the nation's factories.
The National Association of Purchasing Management said its index of manufacturing, a barometer of industrial health derived from survey results, fell to 46.1 percent from 52 percent in April.
An index reading above 50 percent indicates an expansion of factory activity, while a reading below 50 percent indicates a decline. A sustained reading below 44.5 percent indicates a recession for the overall economy.
``I think this is simply a reflection of continued slowdown at the consumer end of the economy finally taking some dramatic effect on the manufacturing sector,'' said Ralph G. Kauffman, chairman of the group's survey committee.
``Purchasing executives' comments on business activity were notably less positive than in recent months,'' Kauffman said.
The survey of 300 manufacturing companies provides the freshest data on how the overall economy is performing and is closely followed by economists and financial markets.
Of the 20 industries in the manufacturing sector, the only industries to report improvement over April were in the paper, glassmaking, metal and photographic instruments categories.
But new export orders increased, benefiting from the dollar's weakness against the Japanese yen and the German mark.
by CNB