Production Machining

OCT 2018

Production Machining - Your access to the precision machining industrial buyer.

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MICHEL GUCKES, MB Chief Economist, Gardner Intelligence Michael has performed economic analysis, modeling and forecasting ork for almost 20 years among a range of industries. Michael received his B.. in political science and economics from Kenyon College and his MB from The Ohio State University. mguckes@gardner eb.com Index Sees Sharp Course Correction PMI breaks trend of sloing groth in multiple months. PRECISION MCHINING INDEX 70 60 50 40 30 PRECISION MCHINING NE ORDERS ND PRODUCTION / / / / / / / / / / / / ugust's Precision Machining Index reading of 56.2 broke the index's 2018 string of decelerating groth readings. The rebound of all the economic components that consti- tute the Precision Machining Index is encouraging. ugust's economic readings for pro- duction and ne orders rebounded strongly. Ne orders, hich con- tracted in July for the first time in almost to years, resumed expand- ing in ugust. Production, hich has experienced sloing groth through- out the year, as the second fastest expanding component of the index during the month. 56.2 Q Production Q Ne Orders 60 50 40 / / / / / / / / / / / / GRDNER BUSINESS INDEX: PRECISION MCHINING 24 PRODUCTION MCHINING :: OCTOBER 2018 R egistering 56.2 for August, the Gardner Business Index (GBI): Precision Machining reversed course, moving higher and breaking its year-to-date trend of slowing growth. -e latest reading places the index just below its average reading since the start of 2017, roughly marking the start of the current and latest business growth cycle. Compared with the same month one year ago, the index increased by 3.6 percent. Gardner Intelligence's review of the underlying data indicates a turnaround by all components of the index except for supplier deliveries, which fell, but from an almost all-time high reading. -e index was supported by supplier deliv- eries, production and employment. -e index's average calculation was weakened by backlog, new orders and exports. All components of the index registered growth during the month. August witnessed a resumption of growth of the three components, which contracted in July. -ose components, returning to expansionary levels, included backlogs, new orders and exports. -e broad-based expansion of the index in August is encouraging. -ese expansions suggest that the macroeconomic environment or its outlook is generally thought to be improving. -is contrasts with the situation experienced during the second quarter of this year when the index was generally sustained by only supplier deliveries and employment. Stay ahead of the curve ith Gardner Intelligence. More information about the Precision Machining Index can be found at gardnerintelligence.com.

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