New paradigm or twilight zone?
Economic growth remained strong through the third quarter of 1997, and early signs pointed to a good fourth quarter as well.
By Staff
01/01/1998
Economic growth remained strong through the third quarter of 1997, and early signs pointed to a good fourth quarter as well. So why have leadtimes been so well behaved? Economists talk of a new paradigm in which the bar is being raised for the long-term growth potential for the economy. Any pressure now felt on leadtimes should lessen in 1998. Watch for continued, albeit minor, declines in leads during the coming year.
LEADTIMES
Dec.1997 Change % 1996 1997 1998
Gears 4.2 -7.6 -1.9 -5.6
Pumps 4.2 -5 -5.4 -1.9
Special fasteners 6.2 -4.7 -3.4 0
Valves 3.2 -0.4 -7 -2.7
Hydraulic cylinders 5.8 -16.5 24.8 -0.5
Historical data: Purchasing Magazine. Forecasts: Cahners Economics
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