Manufacturing purchasing managers in California expect a pick-up in the manufacturing sector’s growth rate in the second quarter compared to the first quarter of 2012 according to a recent survey from Chapman University. The Composite Index, measuring overall manufacturing activity, increased from 56.6 in the first quarter of 2012 to 60.3 in the second quarter. All three industry groups - high-tech, durable goods other than high-tech, and non-durable goods - show higher expected growth rate. The purchasing managers also reported a substantial increase in commodity prices.
The index for the durable goods industries other than high-tech increased from 59.0 in the first quarter of 2012 to 64.2 in the second quarter, indicating a higher growth rate in the second quarter. Production, new orders and employment are all expected to grow at a higher rate in the second quarter. Commodity prices are also expected to increase at a higher rate.
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