Manufacturing Half of the First District manufacturers contacted have experienced revenue gains from a year ago. Substantial increases are reported for innovative technology products, furniture, selected consumer items, and some business services provided by manufacturers. Revenues have been flat or declining for the remaining half of the sample. Paper prices are down sharply as a result of excess capacity in the industry. Intense competition has resulted in declining business for some automotive suppliers.
Most contacts report that materials prices have been flat or declining.
In some cases, this is due to more aggressive dealings with suppliers or the appreciation of the dollar relative to the yen. Manufacturers mention small to moderate increases in the cost of plastic resins, gelatin, abrasives, and furniture-grade maple. Selling prices are reported to be stable or rising up to 3 percent. The increases are largely for business services and consumer products. Manufacturers do not anticipate much change in overall employment levels in 1997.