May MBI at 61.3 – Strong Growth Continues

With a reading of 61.3, the MBI showed that expansion in the metalworking industry has picked up steam throughout 2010. May is the 10^th straight month of expansion in the metalworking industry and the fourth highest reading since the MBI was started in December 2006. The big reason for the improvement in the MBI this month was the employment sub-index, which increased to 76.4 in May from 55.6 in April. Also contributing to faster expansion in May were the new orders and supplier deliveries sub-indices. The new orders sub-index showed its fastest rate of growth since January 2010. The supplier deliveries sub-index showed its second straight month of lengthening delivery times (several respondents mentioned longer delivery times for aluminum product) and reached its highest level since April 2009. The other sub-indices (production, backlog, and exports) showed some slight improvement compared to April. Material prices saw a significant slow down in their rate of increase while prices received by metalworkers remained flat. After six months of less optimistic future business expectations, this sub-index moved to its highest level since October 2009. Quotes from respondents included “great prospects on the horizon,” “picking up new customers,” and “significant quoting activity recently.” For the complete results go here. To participated in the MBI go here.