July MBI Shows Industry Performance Moderating
With a reading of 48.3, the Metalworking Business Index showed that the metalworking industry has contracted for the first time in three years.
The future business expectations subindex has fallen below its historical average, which means that owners/managers are less optimistic than usual. Certainly, the significant drop in backlogs has contributed to this. Also, the Supreme Court’s decision on healthcare was announced shortly before this survey. A similar reduction in optimism occurred last year during the government’s debt ceiling debate. Business owners and managers are more optimistic when conditions appear more stable.
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