Production Machining - Your access to the precision machining industrial buyer.
Issue link: https://pm.epubxp.com/i/196884
BY THE NUMBERS September Shows No Change ith a reading of 44.8, Gardner's precision machining index showed that the rate of contraction was unchanged in September. Te index has virtually remained unchanged since June this year. Half of the sub-indices were better than reported in July while the other half were worse. Once again, supplier deliveries made the biggest improvement in September as they lengthened for the second month in a row. New orders made a similar jump, although they continued to contract at their second fastest rate since December 2012. Backlogs also recorded a slightly higher The index has virtually index in September, but they remain mired remained unchanged in a contraction that since June this year. began in April 2012. Te production sub-index fell the most, nearing its fastest rate of contraction since December 2012. Exports contracted at a faster rate. Tey have contracted consistently since the index began in December 2011. Employment contracted at a slightly faster rate in September. Material prices increased at a slightly faster rate in September. However, this sub-index is near its lowest level since November 2012. Prices received saw a modest increase, which has been the case throughout this year. W STEVEN R. KLINE, JR. Market Analyst Gardner Business Media Inc. gardnerweb.com/economics/blog Also throughout this year, smaller facilities have held the index down. But, facilities with fewer than 50 employees saw some improvement in their index level in September. Business activity was at its highest level since May. However, facilities with more than 50 employees have seen weaker business conditions in recent months. In particular, facilities with 100-249 employees, which grew 5 of the frst 8 months in 2013, saw their index drop to 40.8 from 52.4. Every region contracted in September for the second consecutive month. However, four of the regions—East North Central, Pacifc, South Atlantic, and West North Central—did see a higher index in September. Te East North Central contracted at its slowest rate since May. Te West North Central contracted at the fastest rate. Planned capital expenditures were at their second lowest level since November 2012. Tey were 2.2 percent below the level of September 2012. Tis was the second month in a row that 1-month rate of change contracted. Production Machining Sub-Indices September August Change Direction Rate Trend New Orders 43.2 41.8 1.4 Contracting Slower 7 Production 44.4 46.5 -2.1 Contracting Faster 4 Backlog 37.5 36.4 1.1 Contracting Slower 18 Employment 48.4 48.8 -0.4 Contracting Faster 4 Exports 42.6 44.1 -1.5 Contracting Faster 22 Supplier Deliveries 52.5 50.9 1.6 Lengthening More 2 Material Prices 55.0 54.7 0.3 Increasing More 14 Prices Received 50.3 50.9 -0.6 Increasing Less 2 Future Business Expectations 62.1 62.1 0.0 Improving Flat 22 Production Machining Business Index 44.8 44.8 0.0 Contracting Flat 7 64 PRODUCTION MACHINING :: NOVEMBER 2013