Purchasing Agents Report Pattern of Sluggish Growth

NEW YORK — The nation’s economy continued its recent pattern of sluggish growth in November, with production and new-order levels again showing modest increases, corporate purchasing managers said in a survey released Sunday.

But the buying agents’ trade group, the National Assn. of Purchasing Management, said more of its members also reported lower employment levels than in any month since January, 1983.

More agents also reported paying higher prices rather than lower prices in November for the third straight month.

“In November, the economy continued on what has been a moderate but stable path of expansion,” Robert J. Bretz, chairman of the association’s business survey committee, said in a statement.

“The advance of new orders suggests a healthy level of production in January, after the traditional seasonal drop that can be expected in December,” said Bretz, who also is director of materials management for Pitney Bowes Inc.

The group said its composite index of economic activity slipped to 51.3% from 51.9% in October. A reading above 50% generally signals that the economy is still expanding, the association said.

Each month the group surveys the officials in charge of purchasing materials and products at 250 industrial concerns. The group has about 30,000 members overall.

Last month, 28% of those surveyed reported an increase in new orders, while 18% said orders declined and 54% reported no change.

Twenty-two percent, meanwhile, also reported higher production levels at their companies and 17% said output fell.

Employment showed a significant decline, with 32% of the buying agents reporting lower employment. Nine percent said their companies added jobs and 59% said there was no change.

The percentage of companies with lower employment was the highest since 36% of the purchasing managers reported a drop in January, 1983, the association said. In October of this year, 22% reported employment declines.

As for inflation, 17% of the agents reported paying higher prices in November, while 5% said prices fell and 78% reported no change.

The survey’s results followed other recent data from the federal government that indicated the economy continues to expand, but only sluggishly.

Last week, for example, the Commerce Department said new orders for durable goods--the “big ticket” items expected to last three years or more--tumbled 6% in October, their steepest drop since April, 1984.

Although the latest decline was led by a severe drop in orders for defense goods, non-defense orders alone skidded 2.7%, and economists said the report was a strong sign of continued economic weakness.