Metalworking Activity Holds Steady in March

Metalworking activity remains in contraction, landing in March at the same index as February, following three straight months of slowing contraction. Metalworking has manifested this “stall” followed by “recovery” every few months for the past year, suggesting no cause for concern. March closed at 47.9 compared to February’s 47.7.

March marked another month of slowing contraction in three key components: new orders, production and backlog. While still contracting, the consistent creep of all three toward 50 is encouraging. Employment and exports contracted again in March at nearly the same rates as February, similar to the overall index activity. Supplier deliveries also maintained a steady rate and consistent position in the expansion half of the graph.

Business expectations for the next 12 months have increased for five months straight, which — despite being just a sentiment — has to mean something good.