California’s Manufacturing Up Sharply

0

California’s manufacturing sector grew strongly in the fourth quarter and outperformed the nation, according to a quarterly index released Monday from Chapman University in Orange.


Chapman’s composite index of California manufacturing companies based on a survey of purchasing managers jumped to 67.6 in the fourth quarter of 2005 from 61.1. The index also was higher than the 63.9 reading in the fourth quarter of 2004. An index reading above 50 indicates growth; the national average for the fourth quarter was 54.2.


The solid growth was led by a nearly 20-point jump in the index for high-tech manufacturing, to 76.5 in the fourth quarter from 57.4 in the third quarter. The high-tech sector includes computer and electronic parts, as well as aerospace products and parts.


Also fueling the growth were gains in production, new orders and employment. The jump in new orders bodes well for production and the hiring of new employees in early 2006.


The downside of this robust growth was a demand-driven jump in prices for basic commodities. Chapman’s commodity prices index rose to 82.5 in the fourth quarter from 80.2 in the third quarter, as two-thirds of purchasing managers surveyed reported increases for basic commodities. The index is now at the highest level since the second quarter of 2004.

Previous article Owners to Transform Forum
Next article Guidant Favors Bid From Boston Scientific
Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

No posts to display