Virtually every major economic indicator is signaling that the economy is on the mend and PURCHASING's Industrial Supplies Price Index (ISPI, 1992=100) rose for a second consecutive month in April to 110.3 from 105.7 in March. But, demand rebounds and price increases for industrial commodities remain uneven—centered in energy, steel and lumber.

Energy prices have surged recently due largely to tensions in the Middle East, and that has boosted prices for such petroleum-dependent products as chemicals and plastics. Energy markets also appear to be anticipating higher summer prices for oil and its derivatives as global economic growth and demand for petroleum expand in the months head.

But, April shows little price increase action for nonferrous metals, pulp or paper-based products. And the rapid post-tariff surge in steel prices appears to have slowed as the market attempts to digest new, higher prices and awaits the next round of increases already proposed by domestic mills. Lumber tags slipped a little from March, as slower demand from construction markets tempered the post-tariff surge for wood products.