California's Industries Are Ahead of the Nation
California’s manufacturing sector continues to grow faster than manufacturing sectors in the rest of the nation, but its growth is slowing down.
A recent survey of purchasing managers around the state showed that industries in the durable-goods and non-durable-goods sectors were doing well during the third quarter of this year. However, activity in the high-tech sector was slowing down. The survey was conducted by the A. Gary Anderson Center for Economic Research at Chapman University in Orange, Calif.
Economists conducting the survey found that the state’s manufacturing sector got a 59 rating, which is slightly lower than the sector’s 64.9 rating during the third quarter of 2004.
“Any number over 50 means there is growth,” said Raymond Sfeir, the economics professor who oversees the survey. “We are still growing, but the growth is not as high as it was before.”
Although all sectors of manufacturing grew in California, the high-tech sector had the lowest performance. For the first time since the second quarter of 2003, orders decreased for those companies. The durable-goods sector, which includes appliances and automobiles, had the highest performance.
Because of the slight growth, employment in the manufacturing sector grew only marginally.
On an ominous note, commodity prices increased for all industry groups, with the sharpest uptick in the non-durable-goods area. —Deborah Belgum
