Machine Tool Orders Boom in December 2020

December machine tool orders were 2,775 units and $448,983,000.

December unit orders were the highest since September 2018 (an IMTS month) and the second-highest since December 2017, making December 2020 a breakout month. Unit orders in December increased 22.4% compared with one year ago, marking the fourth consecutive month of growth. As a result, the annual rate of contraction decelerated for the fifth straight month to its slowest rate of contraction since December 2019. 

In December, dollar orders increased at a slightly slower rate of 16.3%. Therefore, the average dollar price of machine tools decreased by 5.0% compared with one year ago. The annual rate of contraction in dollar orders decelerated for the fifth month in a row. 

Month-over-month rates of change differed wildly among the six regions. 

Region                           Units          Dollars

West                                 20.9%         69.3%

South Central                 44.3%         12.2%

North-Central West       28.4%         2.1%

North-Central East        19.2%         10.9%

Southeast                        45.5%         7.8%

Northeast                        -1.2%         10.2%

Compared with one year ago, the GBI: Metalworking grew 6.6%, which was the sixth consecutive month of growth. The annual rate of contraction in the GBI decelerated for the seventh consecutive month and tends to bottom out 7-10 months prior to machine tool orders bottoming out. However, it is clear that the annual rate of change in machine tool orders has already bottomed ahead of schedule.