Despite oft-mentioned concerns about higher energy and commodity prices, a lower growth rate for consumer spending, a slowing of the housing and auto sectors, and higher interest rates, the manufacturing sector appears to be on solid footing and poised for yet another year of expansion. |
Just 8% of the respondents reported that backlogs are down from last year, while 66% said that backlogs are higher. |
The profit margin index is well above the 50%-level, indicating that, for most firms, profit margins are higher than one year ago, when margins were showing improvement from their depressed levels throughout 2001-2002. |
This forward-looking index indicates broad optimism that the expansion of manufacturing activity will continue throughout the year. |
This forward-looking index points to continued expansion in most manufacturing industries. |
While a few manufacturing industries--in particular, the auto industry -- face challenges, the overall manufacturing sector appears to be on very solid footing for at least the near term. |