Survey Finds California Outpacing Nation in Orders
California manufacturers are on a roll.
A recent survey by Chapman University of Orange, Calif., showed that the California purchasing managers composite index is at its highest level since the university launched the economic questionnaire in mid-2002.
“The improvement is almost across all industries in California, both in production and new orders and employment,” said Raymond Sfeir, the economics professor who conducted the quarterly survey. “California has performed better than the nation as a whole. So it looks like we are a leading indicator for the nation.”
The purchasing managers composite index was at 66.9 during the first quarter of 2004, compared with 62.5 during the fourth quarter of 2003. Anything above 50 indicates expansion. The index is up for all areas of the state’s manufacturing sector, which includes high tech, durable goods and nondurable goods.
Of the three groups, high-tech companies had the strongest growth; the purchasing managers index for this area registered 76.2.
Production increased most rapidly in the following industries: food, paper, chemicals, plastics and rubber products, primary metals, fabricated metal products, machinery, furniture, computer and electronic products, and aerospace products and parts.
One cautionary indicator was that commodity prices had risen drastically, registering 83.7 during the first quarter of 2004, compared with 61.2 during the fourth quarter of 2003. “Price increases weren’t unexpected, but they came at a higher level than we expected,” said Sfeir, noting that consumers will soon be paying more for durable and nondurable goods. —D.B.
