NEW YORK CITY REPORT ON BUSINESS:
Bad Now, Good Later
(Released April 30, 2008)

The current downturn deepened in April as business activity fell at the fastest rate in nine months, according to the survey taken by the National Association of Purchasing Management-New York (NAPM-NY). The Current Business Conditions index came in at 37.6 in April.

However, purchasing managers' future optimism returned. The Six-Month Outlook index rose to 59.6 in April, the highest level since November of last year.

Input costs remained elevated. The Prices Paid index rose to 66.3 in April.

Purchasing volume stayed subdued, but is off the lows. The Quantity of Purchases index came in at 45.7 in April.

Skilled labor shortage: 28% / 16% / 15% (Apr / Mar / Feb )

Unskilled labor shortage: 4% / 3% / 0%

Working capital shortage: 26% / 19% / 20%

Raw material shortage: 9% / 3% / 5%

Security concerns: 17% / 10% / 5%

Abnormal weather: 4% / 3% / 5%

"Other" difficulties: 11% / 16% / 15%

No difficulties: 19% / 26% / 40%

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April's special question: In terms of employment, your organization is in what mode -- Hiring, Hiring Freeze or Layoff? Choose all that apply.

More firms said that they were not hiring than hiring.

Hiring 60%
Not Hiring 72%

Of which:
Hiring Freeze 46%
Layoff 26%

(Numbers do not add to 100% because of multiple responses.)

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The NAPM-New York REPORT ON BUSINESS is a monthly publication of NAPM-New York. Permission is granted to duplicate, republish or quote in whole or in part with credit. For technical questions on the survey, please contact Jonathan Basile via phone: 212-538-1436 or email: jonathan.basile@credit-suisse.com

Download the current edition - April 2008 (PDF Edition)

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