11 October 2012 17:39 [Source: ICIS news]
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The Manufacturers Alliance for Productivity and Innovation (MAPI) said that its quarterly survey of the business outlook indicates “slowing growth for US manufacturing over the next three to six months” and shows “continued softening in the industrial base”.
The MAPI survey of senior financial executives across a broad range off manufacturing industries measures shipments, orders, inventory and profit margins to develop a composite business outlook index.
MAPI says that the composite index “is an historically accurate near-term preview of business prospects for the manufacturing sector and is a leading indicator of the Federal Reserve’s industrial production index”.
For the three months ended on 30 September, MAPI said that its composite index fell to 56 from the previous reading of 61 at the end of the second quarter in June.
That five-point drop in the index was the sharpest decline over the nine quarters of slowdown and followed a four-point drop in the second quarter.
The third quarter index measure of 56 is down from the record high of 81 seen in June 2010, the alliance said.
That third quarter decline also brings the index closer to the midpoint measure of 50, the demarcation that separates manufacturing from growth and contraction.
MAPI senior economist and survey coordinator Donald Norman said that the
In addition to the ongoing decline in the composite index, MAPI said that its survey of manufacturing chief financial officers (CFOs) showed declines in export orders during the third quarter along with lower capacity utilisation and declines in both capital investment and spending on research and development (R&D).
For the third quarter survey,
He said that “83% of respondents believe that going over the fiscal cliff would have a moderately negative to very negative impact on their company.”
“Just 8.6% said that the impact would be minimally negative,” he added.
In anticipation of the fiscal cliff,
Asked what they regarded as the greatest threat to the
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