General Motors' top purchasing executive confirmed the company is shifting business away from its top supplier, Delphi, as the supplier moves through its bankruptcy. GM's Bo Andersson, vice president of global purchasing, told a group of suppliers at a meeting that he has engaged GM's best-performing suppliers to ask if they are interested in picking up more Delphi work. GM stopped buying spark plugs from Delphi and transferred its business to Beru, Denso, Honeywell and NGK Spark Plugs, making it easier for Delphi to close a spark-plug plant in Flint, Mich.

The outlook for the U.S. steel market "is poor," says Prudential Financial analyst John C. Tumazos, who writes in April that demand trends appear to be slowing. "We are losing confidence in our 4.5% U.S. demand growth estimate for 2006," he adds. Tumazos and other analysts say earlier expectations of steel being restocked by automakers in North America appear to have fizzled. Buyers polled by Purchasingdata.com in April showed the least-bullish expectations about steel buying in five months.

The Manufacturers Alliance/MAPI composite index remained unchanged in March, coming in at 74 for the second quarter in a row. The survey is designed to be forward-looking so the March survey indicates continued manufacturing expansion as it matches the highest level since the middle of 2004. The report indicates strong growth in new orders expected as well as in shipments. "The strong industrial rebound that began last fall has momentum," says MAPI chief economist Daniel Meckstroth.

Purchasingdata.com's business conditions index for April posted a solid gain to 60.8. This is the best reading since 73.4 in May 2004. The index (where 50 and above shows growth) runs true with economists' expectations of a healthy second quarter increase based on the spate of good showings from regional manufacturing polls.

U.S. industrial production posted a stronger than expected 0.6% gain in March-with manufacturing, utilities, and mining all showing strong gains. Consistent with firming production trends, capacity utilization rates edged higher. In the months ahead, economist Zoltan Pozsar at Moody's Economy.com says manufacturing gains should continue "as healthy investment plans from businesses flush with cash, the upswing in the global capex cycle and fairly lean inventories across most industries all signal good performance in coming months."

Small-business optimism fell in March as labor market conditions declined, capital spending plans weakened and sales expectations dipped. The National Federation of Independent Business says its March index fell 3.5 points to 98.0 from 101.5 in February. "Although the first quarter will be very strong, something spooked small business owners in March regarding the future course of the economy," according to the trade group.

Consumer confidence in the U.S. economy weakened in April for the second month in a row, as consumers struggled with higher energy costs, rising interest rates and climbing credit burdens. Investor's Business Daily and TechnoMetrica Market Intelligence report their economic optimism index slipped to 48.6 in April, down from 49.1 in March and below the 50.5 reading in February. A reading below 50 indicates pessimism.

U.S. plastic lumber of Chicago has been purchased by American Pacific Financial Corp. of San Bernardino, Calif. The company has been renamed Trimax Building Products, and recast as a manufacturer of high-density polyethylene (HDPE)-based building materials for structural lumber, transportation, marina and residential decking products.

Macrotech polyseal in South Salt Lake City, Utah, a producer of fluid power seals based on polyurethane and engineered plastic PTFE (polytetrafluoroethylene) has been purchased by the Automotive Division of SKF Sealing Solutions of Sweden.

Alcoa, the aluminum giant, could face reduced shipments and lowered production at several plants, possibly sending prices higher for products already in tight supply, should workers strike when the master contract expires May 31. The contract with the United Steelworkers of America covers 20% of the company's 45,000 workers in the U.S. With aluminum prices up and Alcoa earning high profits, union officials want employees to get raises and avoid benefits cuts, while the firm wants concessions aimed at curbing costs.