Precision Machining Index Continues to Hover on Edge of Expansion
September brought a slight drop as the GBI: Precision Machining stays within striking distance of passing the 50 threshold.
The Gardner Business Index (GBI): Precision Machining measures the current state of precision machining activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion, and below 50 indicates contraction.
Precision Machining Index dips to 48.7 in September. Source (all figures): Gardner Intelligence
The Precision Machining Index fell 0.4 points in September for a reading 48.7. The index maintains its position just short of expansion as September marks the fourth consecutive month of results within two points of 50. Components were mostly flat from last month with no component moving more than half a point in either direction. Production saw the biggest single-month improvement while backlogs saw the biggest single-month decrease. Optimism continues to rise with the Future Business Index increasing to 65.8 in September.
The GBI Components Scorecard reports the monthly change rate of primary precision machining market factors contributing to the overall monthly index reading.
Components were mostly flat compared to August and all components improved on results from on year ago.
Reading the Scorecard:
- Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion, and red indicates contraction.
- Shade indicates a value’s distance from 50. The darker the shade, the further from 50.
- Direction indicates a value’s change versus the previous period. Pointing up is always better.
The GBI Future Business Index is an indicator of the future state of the precision machining market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion, and under 50 is contraction.
Three-month average for the Future Business Index rose again to 65.8 in September.
Find the latest precision machining market research and reporting at GardnerIntelligence.com.
