Forward Looking Indexes Decline
All seven forward looking indexes declined but as a group still remain well above 50, the dividing line between expansion and contraction.
The prospective non-U.S. shipments index, which measures expectations for shipments abroad by foreign affiliates of U.S. firms in the third quarter of 2012 compared with the same quarter in 2011, fell to 60 in the current report from 77 in the March survey.
The non-U.S. investment index, based on expectations regarding capital expenditures abroad in 2012 compared to 2011, declined the same, to 60 in the June report compared to 77 in March.
The interest rate expectations index was 51, down from 62, continuing the sentiment that longer-term interest rates are expected to rise by the end of the third quarter of 2012.
The annual orders index, based on a comparison of expected orders for all of 2012 with orders in 2011, eased to 79 in June from 88 in March but remained at an impressive level.
The research and development spending index surveys participants regarding R&D spending in 2012 compared to 2011. The index was 72 in the June report compared to 76 in March.
The prospective U.S. shipments index, which reflects expectations for third quarter 2012 shipments compared with the third quarter of 2011, dropped to 75 in June from 77 in the previous report.
The U.S. investment index is based on executives’ expectations regarding domestic capital investment for 2012 compared to 2011. The index was 73 in June, down slightly from 74 in March.
