Metalworking Activity Trends Downward in May
Accelerated contraction and declines in business optimism span manufacturing segments. Odds are that broad-reaching economic factors are at play.
Share
Hwacheon Machinery America, Inc.
Featured Content
View More
Takumi USA
Featured Content
View More
.png;maxWidth=45;format=webp)
DMG MORI - Cincinnati
Featured Content
View More
Metalworking activity contracted at a faster rate in May for the second month in a row. May closed at 45.5, down 1.6 points relative to April and down 2.8 points compared to the same month one year ago.
Indications are, indeed, not encouraging, and because accelerated contraction and declines in business optimism span manufacturing segments, odds are that broad-reaching economic factors, specifically interest rates and sustained inflation, are at play.
For the first time in 2024, new orders, production and exports accelerated contraction. Employment and backlog contracted at steady rates, backlog remaining most contracted among all components. Supplier deliveries lengthened again in May at a slightly increased rate, likely a function of continued or new supply chain challenges since new orders do not appear to be stressing the system. Expectations regarding future business remained positive but took a slight downward turn.
New orders, production and exports contracted faster in May (3-MMA = three-month moving averages). Source: Gardner Intelligence
Related Content
-
Metalworking Activity Starts Year With Slowing Contraction
The GBI: Metalworking welcomed the new year with slowed contraction of components for the second month in a row.
-
Metalworking Activity is on a Roll, Relatively Speaking
February closed at 47.7, up 1.4 points relative to January, marking the third straight month of slowed contraction.
-
Metalworking Activity Continued to Contract Steadily in August
The degrees of accelerated contraction are relatively minor, contributing to a mostly stable index despite the number of components contracting.
