Posted October 14, 2011
MAPI manufacturing index falls slightly
The results of the quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook shows manufacturing maintaining momentum in the face of economic uncertainty.
The September 2011 composite index fell only slightly, to 67 from 68 in the June report. This is the eighth consecutive quarter the index has been above the 50 percent threshold, the dividing line that separates contraction and expansion. While it also represents the fifth straight decrease from the record high of 81 in June 2010, it remains consistently high.
"This quarter's survey results point to continued growth, but at a slower rate," said Donald A. Norman, Ph.D., MAPI economist and survey coordinator. "The forward looking indexes came in at relatively high levels and at 43.3 percent capacity utilization is quite high. Despite the fact that a number of indexes fell, taken together, the results of this quarter's survey contradict the view that manufacturing sector activity is sputtering."
The composite business outlook index is a weighted sum of the U.S. shipments, backlog orders, inventory, and profit margin indexes. In addition to the composite index, the survey includes 13 individual indexes.
