CHICAGO (MNI) – The following are excerpts from the July Chicago
Business Barometer, published Friday:

The Chicago Purchasing Managers reported the CHICAGO BUSINESS
BAROMETER stabilized at the average of the May and June readings. The
report was characterized by substantial declines in EMPLOYMENT and
SUPPLIER DELIVERIES. Still, the Business Barometer posted its 22nd month
of expansion.

BUSINESS ACTIVITY:

–EMPLOYMENT approached neutral;

–SUPPLIER DELIVERIES declined dramatically;

–ORDER BACKLOGS reversed the prior 3-month consecutive decline that
brought the index into contraction.

BUYING POLICY:

–Lead times for both PRODUCTION MATERIEL and CAPITAL EQUIPMENT
declined;

–Lead times for MRO SUPPLIES rose for the second month.

General Comments from Members of the Survey Panel Each month, the
survey panelists have the opportunity to add comments to clarify the
reported activity of their organization. As appropriate, the report
includes comments selected for their insight. No attempt is made to
ensure that the nature of the comments represents the survey panel as a
whole. Corrections to minor issues such as typographical errors, that do
not impact interpretation, may have been made.

FROM THE SOURCE an occasional feature

1. Business somewhat erratic up & down. This month
is better..

2. Appears business is slowing down some.

3. Business is still strong but we see a little slow down this
summer. However, all indications are it should be a strong shipping
year.

4. New orders dropping a little overall, but some product lines
remain very strong. Revenues same as last month as backlog of orders
keeping us very busy.

5. Business volume is good. A welcome break in commodity prices
created a buying window. Global supply/demand issues linger into 2012.

6. High commodity levels still impacting profits. Going to implement a
price increase to help balance these costs.

7. Many suppliers are being very careful with their capital
expenditures because of continued uncertainty with the future economic
climate.

8. Supply still tight. Focus is on inventory levels of both raw and
finished goods.

9. Transportation costs still rising despite fuel moderating slightly.

10. We have seen steady increases in orders all year. The forecasted
demand from our customer base shows more increases for 2012. Let’s hope
they hold true. Resulting reduced forecasts increase risk but improve
financial agility through enhanced liquidity.

11. I don’t hear anyone saying that they’re “going gangbusters”,
but we have many new opportunities and new customers practically
breaking down the doors to place work. On the other hand, I also wish we
could get a casting or forging in on time.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$]