Warehousing: inventory and prices up

Purchasing and supply executives in the non-manufacturing sector report contraction in economic activity overall.

By Staff -- Modern Materials Handling, 7/8/2008

Economic activity in the non-manufacturing sector contracted in June, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report on Business. Transportation and warehousing are among the industries represented in this report.

The Non-Manufacturing Business Activity Index decreased 3.7 percentage points to 49.9%, however transportation and warehousing were among the industries reporting growth in this category. Transportation and warehousing also reported growth in new orders, but professionals in this category also reported an increase in the prices they paid and they also felt they were holding too much inventory. Other decreases reported by transportation and warehousing professionals: new export orders and imports.

Survey respondents to the index indicated that oil prices are affecting most of their suppliers and that energy costs are disrupting business.