Most indicators monitored by the nation's purchasing managers in their latest report show continued slippage in the economy, but the rate of decline seems to be easing. It is too early to determine what effect the decline of interest rates in late August will have on the industrial economy.
Production, incoming new orders, employment, and inventories were all lower - but at a slightly lesser rate than a month ago. The price picture continues good , with only 5 percent of those reporting higher prices. Capital spending declined at an increasingly rapid rate. Only 47 percent of the members said they are buying capital goods one year ahead or more, the lowest number since April 1964. The drop from July was the most severe since January 1973.