Gardner Business Index: Precision Machining February 2023

According to Gardner Intelligence, the Gardner Business Index:  Precision Machining grew in February for the first time in 5 months, closing at 52.6. This is up 2.8 points versus January’s nearly flat 49.8 index. (See last month’s reading.)

GBI: Precision Machining component activity generally changed direction, in a good way, in February.

• New orders led the way, still contracting in February, but at a slower rate.
• The same can be said of export activity, which contracted more slowly for the second month in a row. 
• Backlog joined other components, with slowed contraction in February, which is the first time since it started to contract in September 2022.
• Production went beyond the anticipated flat reading and entered growth mode in February, following 5 months of contraction.
• Employment activity has been growing every month since the end of 2020, but February is the first month in over 6 months that the rate of growth was faster than the previous month.
• In February, supplier deliveries continued a longtime path (beginning August 2021) of lengthening that slowed.
• Cautious optimism suits the message of February’s GBI index and components. The number of components still contracting — and the associated absence of growth — serve to temper expectations.

Precision Machining Index

Precision Machining activity grew in February, closing at 52.6.

Key Components (3-month moving average)

Several components contracted more slowly in February, with one of them (production) entering growth mode.