Supply is loosening, prices are stable or down

By Staff -- Purchasing, 2/11/1999

SUPPLY LOOSENING, BUYERS' OUTLOOK POSITIVE. Forty-six percent of buyers in the CPI say business conditions will be better in six-months time. That's a one-point drop from last month, but still an optimistic figure compared with buyers' opinions since last summer. Also, only 14% of buyers expect business to be worse--the lowest figure since July of last year. Forty percent of buyers expect business conditions to remain the same six months ahead.

Supply is not tight, as only 3% of buyers report tight availability of materials--a five-point drop compared with last month. For the majority of buyers surveyed (68%) availability remains normal, up by two points. Twenty-five percent call availability "loose".

Buyers still continue to lower inventory levels--38% of buyers surveyed say they're lowering inventories. That's a six-point jump over last month, and the highest number since a year ago. Forty-two percent of buyers continue to hold inventories steady--unchanged compared with last month.

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