However, weakness is emerging or continuing in a substantial range of industries. Demand from the semiconductor industry reportedly is down almost 50 percent from a year ago. Furniture orders, which had been growing strongly, now appear to be trailing off. A paper mill reports a flurry of order cancellations in the past month. Manufacturers of automotive components and consumer items also report falling sales.
Some firms also mention steep declines in business in Russia and Brazil.
Almost all manufacturers indicate that both their materials costs and their selling prices are either stable or falling. The few increases in selling prices are in the range of 1 to 3 percent. Paper prices are said to be falling at a double-digit rate and companies are getting bargains on items from Asia. Because of a reduced crop this year, cotton prices are expected to increase in coming months. Most respondents' capital spending plans are unchanged, although a few are either cutting or scrutinizing expenditures.