Activity in metals-consuming companies remains in a growth mode, but the rate of expansion has slipped for two consecutive months, according to Business Survey data collected in July by PURCHASING Magazine. The recession in the manufacturing industry officially has ended, though as yet the pace of the recovery in metalworking, especially, remains modest. And that's why anticipated purchasing activity will decline through summer, according to metals buyers.

Transaction prices for steel rose steeply again in June. But, the Commerce Department on late June released revised figures for factory orders, which now suggest that business capital spending remains weak. Growth in the value of new factory orders for durable goods has been less than initially reported. Atop this more pessimistic picture of factory orders comes revised data showing that full recovery in capital spending remains in the distance. And that's probably why metal-using firms appear to have renewed reducing in-plant inventories.