Business Conditions, Buying Plans Indexes Jump Up in April
According to the latest survey of buyers from Purchasingdata.com, purchasing managers report overall business conditions continuing to improve this month and expect to need more materials in the next quarter.
Purchasingdata.com’s monthly business conditions index increased to 42 in the April survey, trending up from 30.8 last month. While the index has not registered growth (a reading above 50) since last May, this month’s reading is the index’s highest level since September 2008 and shows that growth may well come in the next month or two.
In the latest Blue Chip Economic Indicators survey, 86% of economists polled said the recession will be over in the second half. Overall, buyers responding to the survey seem to agree that the worst is behind the U.S. economy and those business that can hang on will see growth again soon.
“Business is still slow with many ups and downs, but lately we’re seeing more ups than downs,” said one purchasing manager in the monthly survey.
“Business is slow, but not slowing,” said another buyer. “It seems to have stabilized right now.”
Many buyers in the monthly survey said that while orders may not have picked up yet, there is a noticeable increase in the amount of quoting activity going on in various markets, indicating that the manufacturing supply chain is readying for a turnaround. The Purchasingdata.com 90-day buying plans index jumped up nearly 15 points in April to end just under a growth reading.
“While overall buying is down, quoting activity is up, which bodes well for the second quarter,” says a commodity manager at a tool manufacturer.
“We are doing a lot of requoting on jobs due to the recent reduction of material costs,” said a buyer at a metal parts company in Canada. “But we are still busy.”
Purchasingdata.com’s monthly business conditions index increased to 42 in the April survey, trending up from 30.8 last month. While the index has not registered growth (a reading above 50) since last May, this month’s reading is the index’s highest level since September 2008 and shows that growth may well come in the next month or two.
In the latest Blue Chip Economic Indicators survey, 86% of economists polled said the recession will be over in the second half. Overall, buyers responding to the survey seem to agree that the worst is behind the U.S. economy and those business that can hang on will see growth again soon.
“Business is still slow with many ups and downs, but lately we’re seeing more ups than downs,” said one purchasing manager in the monthly survey.
“Business is slow, but not slowing,” said another buyer. “It seems to have stabilized right now.”
Many buyers in the monthly survey said that while orders may not have picked up yet, there is a noticeable increase in the amount of quoting activity going on in various markets, indicating that the manufacturing supply chain is readying for a turnaround. The Purchasingdata.com 90-day buying plans index jumped up nearly 15 points in April to end just under a growth reading.
“While overall buying is down, quoting activity is up, which bodes well for the second quarter,” says a commodity manager at a tool manufacturer.
“We are doing a lot of requoting on jobs due to the recent reduction of material costs,” said a buyer at a metal parts company in Canada. “But we are still busy.”
quoted from: Purchasing.com
