Detroit Purchasing Managers Report September Improvement

4 October 1999

Detroit Purchasing Managers Report September Improvement -- Comerica

    DETROIT--Oct. 1, 1999--Members of the National Association of Purchasing Management-Metro Detroit (NAPM-MD), surveyed in September by Detroit-based Comerica Bank, reported a 1.4 point gain in overall business conditions from August for Southeast Michigan's industrial economy.
    Comerica's composite index stood at 56.5 in September, compared with 55.1 in August. A year earlier, the index stood at 67.2, reflecting catch-up after the 54-day GM strike. The index is a seasonally-adjusted weighted average measure of new orders and production activity, employment, inventories and promptness of supplier deliveries. It ranges from 0 to 100. A composite index below 50 generally means conditions are deteriorating; levels above 50 denote expansion.
    "Both the automotive and non-automotive sectors remain in expansion mode, but the price indices in both sectors have made serious and significant upward moves this year," said David L. Littmann, chief economist with Comerica Bank. "During September, survey respondents noted shortages of imported steel and a Y2K-related build-up of orders and inventories."



                       AUTO        NON-AUTO         TOTAL
                     AUG  SEP      AUG   SEP      AUG   SEP

NAPM-MD
Composite Index      54.1 54.0     55.7  57.5     55.1  56.5

  Production         35.0 35.0     56.3  60.4     48.1  52.9
  New Orders         60.0 60.0     53.1  58.7     55.8  59.1
  Inventories        65.0 65.0     46.9  52.1     53.8  55.9
  Employment         60.0 60.0     56.3  47.9     57.7  51.5
  Vendor Performance 60.0 60.0     65.6  68.8     63.5  66.2
  Prices             65.0 65.0     53.1  62.5     57.7  63.2

Weighting            38.5 29.4     61.5  70.6    100.0 100.0

Comerica's composite index is based on surveys of local purchasing managers belonging to the 500-member NAPM-MD (National Association of Purchasing Management-Metro Detroit).
Comerica Bank, the largest bank in Michigan, is a subsidiary of Comerica Incorporated , a multi-state financial services provider headquartered in Detroit, with banking subsidiaries in Michigan, California and Texas, banking operations in Florida, and businesses in nine other states. Comerica also operates banking subsidiaries in Canada and Mexico. Comerica is celebrating its 150th anniversary in 1999.