Machine Tool Unit Sales Up 74% Month Over Month

According to USMTC, machine tool sales in August were 73.8% (units) and 105.0% (real dollars) more than in August 2009. This is highest percentage gain month over month since the recovery began and the second highest percentage gain month over month since April 1965. In other words, this is most likely the strongest recovery/expansion in machine tool sales we have ever seen. Of course, we are starting from a low base. Based on my projection (the dotted line in the chart below), machine tool unit sales are on pace to grow close to 40% in 2010 compared to 2009. Dollar sales are growing even faster than unit sales during this recovery/expansion. In the short term, industrial production and the Metalworking Business Index are pointing to stronger growth in machine tool sales. However, there are signs that the economy is starting to slow down again and that the inventory replenishment that has been a driver of the recent upturn in manufacturing is over. For more information on machine tool sales go here and click one of the industries.