Making Progress

Manufacturing in Orange County grew steadily during 1994. A composite index of economic performance as well as four key components of the index, based on a survey of purchasing managers, all rose for the fourth quarter. An index value of 50 or more indicates growth, while one less than 50 signals a decline. Each index is seasonally adjusted.

Index on the Rise

The composite index, a weighted average of seven parts, climbed for the final quarter of 1994 to the second-highest level for any quarter and the single highest fourth-quarter reading. Fourth-quarter trend: 1994: 64.4

Key Components for ’94

Production

After a second-quarter decline, the production index finished the year at its highest level since the survey began in 1988: Quarter /Index 1st: 66.7 2nd: 64.0 3rd: 64.9 4th: 72.7

New Orders

According to six out of 10 purchasing managers surveyed, new orders in the fourth quarter were higher than in the previous three months: Quarter / Index 1st: 58.1 2nd: 59.2 3rd: 61.1 4th: 74.0

Commodity Prices

During the fourth quarter, the price index rose to its highest level since 1988, perhaps heralding higher interest rates ahead: Quarter / Index 1st: 62.9 2nd: 73.0 3rd: 77.8 4th: 80.5

Employment

Hiring in defense-related industries has leveled off, but hiring in the electronics and electrical equipment industries was higher at the end of 1994: Quarter / Index 1st: 52.1 2nd: 52.3 3rd: 52.3 4th: 56.0

Source: Chapman University Center for Economic Research; Researched by VALERIE WILLIAMS-SANCHEZ / Los Angeles Times