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Factory Growth Picks Up Again In The Midwest; Delivery Index At 1987 High.(A)
Byline: ED CARSON
Manufacturing's rapid recovery continued last month, with Midwest factories stretching delivery times and expanding backlogs in the face of heavy demand.
The Chicago purchasers' index rose 6.3 points to 63.9 in April, beating forecasts for 60. That's the 12th straight month over 50, indicating expansion and the fifth month in six above 60.
"Manufacturing is coming back very strongly," said Ken Mayland, president of Clearview Economics. "We're going to see strong manufacturing numbers for a very long time."
Factories are having trouble keeping up with demand. The order backlog rose 1.6 points to 57.5 in April, the highest since November 1999. The supplier deliveries index surged 10 points to 69.7, its highest since December 1987.
"It certainly reflects what we're seeing on the ground," said Diane Swonk, chief economist at BankOne. "There's been a huge reluctance to invest, and that's created bottlenecks."
The inventories index has ramped up the ...
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