June 2020 A Strong Month for Machine Tool Orders

June machine tool orders were 2,149 units and $342,179,000.

June’s unit orders were the highest of 2020 and the third-highest since June 2019. Also, June was the first month with more than 2,000 units (more than 2,000 units is a strong month) since December 2019. June’s orders contracted 2.8% compared with one year ago, which was the third slowest rate of contraction in the last 13 months. The annual rate of contraction was 19.3%. The rate has contracted for 11 months, accelerating for six consecutive months.

Dollar orders contracted 7.4% compared with one year ago. This was the 17^th straight month of dollar order contraction. However, it was the second slowest rate of contraction in those 17 months. The annual rate of change contracted for the 12^th month in a row, but June was the first month that the rate of contraction decelerated.

The West region had a particularly strong month with unit orders up 6.9% and dollar orders up 18.2% compared with one year ago. Also, the Southeast had a very strong month with unit orders up 6.2% and dollar orders up 14.0% compared with one year ago.

The Gardner Business Index contracted at a decelerating annual rate in July. Also, the index has moved up toward 50 for three months in a row, indicating a slower contraction in recent months. The annual rate of contraction in the GBI tends to bottom out 7-10 months prior to machine tool orders.