MBI Grows at Fastest Rate Since Nov. 2010

With a reading of 63.3, the June MBI showed that the metalworking industry grew at its fastest rate since November 2010. This has been its third fastest rate of growth since this period of expansion began in August 2009.

 

All six subindices contributed to the faster growth rate. However, the most significant reason for the faster growth was a dramatic turn in production, which was up 20.1 percentage points. This reversed production’s trend of slowing growth that had been in place since January 2011.

 

New orders and employment also contributed notably to the improved MBI. New orders reversed a trend of slowing growth in place since November 2011, and employment reached its fastest rate of growth since the MBI began in December 2006. Supplier deliveries continued its lengthening trend, which has been in place since August 2010. I take this as a sign of the overall strength in manufacturing. Also, for the first time since May 2009, prices received grew at the same rate as material prices. This is all good news for the metalworking industry.

 

Despite all of this positive news, future business expectations have been hovering around the long-term average for most of 2011, which is lower than almost all of 2009 and 2010.