The manufacturing recovery is losing momentum fast, according to numerous government and private economists, who cite this year's cutbacks in business investment as the major culprit. Interestingly enough, latest reports support PURCHASING's findings of declining optimism about a swift recovery evident for some time among metals buyers at manufacturing companies. The rate of business expansion among metals-consuming firms barely showed any growth again in August, according to business survey data collected by PURCHASING Magazine. Purchasing activity planned by these 500 metals buyers slipped for the third straight month.

However, even with business activity slowed by summer holidays and the slow-growth economy, more than half (51%) of metals buyers reported shortages and delayed summertime deliveries. Buyers reported hot-rolled, cold-rolled and galvanized sheet steel as the most serious national supply shortages—citing the grades with the largest of the Section 201 tariffs. Other metals with extended leadtimes in various regions were high-end grades of stainless steel sheet, steel forgings, specialty nonferrous castings, certain grades of galvanized steel tube, thin-gauge tubing, certain sizes of aluminum extrusions, some thicknesses of aluminum foil and brass rods.