Activity in metals-consuming companies grew in May for the fourth consecutive month, according to Business Survey data from PURCHASING. Forty-five percent of metals-using companies report rising incoming orders while another 38% say order levels are stable.

Buyers say metalworking activity is continuing to improve and economists report that investment in capital goods is strengthening. Rebounding motor vehicle production is lifting orders for primary and fabricated metals products. General Motors just restored the third shift at its heavy-duty pickup plants. Defense-related spending is strong. Metals buying plans rose briskly again in May to meet expanding third quarter production schedules. Fifty-three percent of buyers will boost metals purchasing in coming weeks. That's the highest buying trend reported since March of 2000.

Another positive indicator: Metals-using firms appear to have stopped reducing inventories; 29% had lower inventories in May versus 63% in December.