Precision Machining Index Loses Momentum in June
A mixed bag of component results shakes out to a slight decline in the index.
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; below 50 indicates contraction.
The Precision Machining Index stalled just shy of expansion in May, but could not maintain momentum in June, losing 1.2 points for a reading of 48.6. Production, employment and exports saw small improvements, but they were offset by greater losses in new orders and backlogs. But it was a significantly shorter times in supplier deliveries that stood out this month, indicating a softening of activity elsewhere in the supply chain. The Future Business Index was relatively flat in June, bringing the three-month average to 61.7, well above its position in June of previous years.
The GBI Components Scorecard reports the monthly change rate of primary precision machining market factors contributing to the overall monthly index reading.
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.
Find the latest precision machining market research and reporting at GardnerIntelligence.com.
