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Detroit Purchasing Managers Report Excellent May

28 May 1998

Detroit Purchasing Managers Report Excellent May - Comerica

    DETROIT, May 28 -- Members of the National Association of
Purchasing Management-Metro Detroit (NAPM-MD), surveyed in May by
Detroit-based Comerica Bank , revealed a 1.0-point gain from April
in overall business conditions for Southeast Michigan's industrial economy.
    Comerica Bank's composite index of the local industrial economy, which is
based on the survey of purchasing managers, registered 62.4 in May, up from
61.4 in April.  May's reading is the highest so far in 1998 and is 16.2 points
above depressed year-earlier levels.
    "The remarkable feature of the May survey is that all categories of
business conditions were robust, with the exception of pricing, which actually
showed deflation," said David L. Littmann, chief economist at Comerica.  "Many
respondents cited the power of global purchasing and joint buying.  Employment
was especially buoyant, but production activity and inventories also moved
higher during May," Littmann noted.

                              AUTO            NON-AUTO            TOTAL
                           APR    MAY        APR    MAY        APR    MAY

    NAPM-MD
    Composite Index        51.1   66.7       65.0   61.1       61.4   62.4

     Production            50.0   66.7       70.5   65.8       65.5   66.0
     New Orders            50.0   58.3       77.3   65.8       70.0   64.0
     Inventories           43.8   75.0       47.6   52.6       46.6   58.0
     Employment            50.0   83.3       61.9   68.4       58.6   72.0
     Vendor Performance    75.0   66.7       66.7   50.0       69.0   54.0
     Prices                50.0   25.0       50.0   47.4       50.0   42.0

    Weighting              26.7   24.0       73.3   76.0      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).  The index is a seasonally-adjusted
weighted average measure of new orders and production activity, along with
employment, inventories, and the promptness of supplier deliveries.  The index
ranges from 0 to 100.  A composite index below 50 generally means conditions
are deteriorating; levels above 50 denote expansion.  The composite index and
its components have been tabulated since October 1985.  A table showing detail
of this month's composite index is available on request.