MAPI Index falls to 21

From Supply & Demand Chain

Business Outlook Survey Offers Bleak Forecast as MAPI Index Hits Second Straight Historic Low
Manufacturers Alliance's composite index falls from 28 in December 2008 to 21 in March as manufacturing faces continued headwinds, companies respond to the sharp downturn
By Editorial Staff

Arlington, VA — April 16, 2009 — The already battered manufacturing base appears headed for further decline, as the quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook, a leading indicator for the industrial sector, registered a drop to 21 from the previous historic low of 28 reported in the December 2008 report, the alliance reported today.

At this level, the index indicates that overall manufacturing activity is expected to contract over the next three to six months. The index is at its lowest level since the survey originated in March 1972.

The survey was conducted on a semi-annual basis from 1972 to 1991 before being conducted on a quarterly basis in 1991. It should be noted, however, that the index measures the direction of change rather than the absolute strength of activity in manufacturing.

The March 2009 survey marks the third consecutive quarterly reading below 50, the demarcation point between growth and contraction, and lies in stark contrast to an index of 57 just one year ago.

Prior to the recent string of sub-50 readings, the last time the MAPI index was below 50 was when it registered 40 in December 2001.