Of the remainder, about the same number report faster growth as report declines. Contacts indicate brisk activity and some capacity constraints for telecommunications equipment, automotive and aircraft components, furniture and home appliances, cable, and packaging. Demand by small businesses for office equipment and supplies is said to be growing strongly. Manufacturers in these various product lines remain upbeat about future trends. By contrast, a maker of industrial machinery, a paper manufacturer, and several companies selling to the computer and electronics industries express disappointment with recent results or see signs of slower activity ahead.
Exporters indicate that Asian business has slowed, mostly in line with expectations.
One reports rising liquidity problems for Asian customers, particularly smaller firms. A couple of contacts point to continuing risks due to structural problems in the Chinese and Japanese economies, although another firm indicated that its sales to China remain strong. European sales have picked up smartly for most contacts, although less so for consumer products than for capital goods. Most manufacturers indicate that their materials costs and selling prices remain generally stable. However, computer memory prices are falling dramatically and paper prices are slipping.