State's Manufacturing Sector Doing Better in Third Quarter -- October 23, 2003 -- California Capitol Hill Bulletin -- Volume 10, Bulletin 31

According to the new survey of 234 purchasing managers released by the Chapman University on Tuesday, October 14, 2003, California's manufacturing sector showed strong improvement, headed by the high-tech industry, during the third quarter ended September 30. The University's quarterly index of factory activity increased to 63.3, up from a 47.5 showing in the second quarter. The manufacturing sector Purchasing Manager's Index (PMI), compiled by the Institute for Supply Management, also demonstrated that manufacturing expanded in September; the PMI was 53.7 percent in September, only a bit lower than the 54.7 percent scored in August. A value above 50 indicates growth, while a value below 50 signifies contraction. The high-tech industry showed an even better improvement; the Chapman University survey's index for high-technology rose to 71.3, up from 43.4 in the second quarter. National manufacturing indicators are similarly positive, with industrial production and U.S. exports on the rise.

The survey also demonstrated that manufacturing employment was rising, albeit slowly. California gained 3,500 manufacturing jobs in September, the first increase since April 2002. The number of managers surveyed that said that they had added positions in the third quarter increased 9 percentage points, from 19 percent in the previous quarter to 28 percent in the third quarter.

To expand communications between Washington and California, the California Institute provides periodic bulletins regarding current activity on Capitol Hill that directly impacts our state. Bulletins are published weekly during sessions of Congress, and occasionally during other periods.

The California Institute for Federal Policy Research
A Source of Information on California and Federal Policy
419 New Jersey Avenue, SE, Washington, D.C. 20003
voice: 202-546-3700   fax: 202-546-2390  ransdell@calinst.org    http://www.calinst.org