Precision Machining Index Returns to Contraction with April Reading of 46.2
Tariff uncertainty drives market hesitancy as shops report drop in new orders.
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.
The Precision Machining Index recorded a significant decline in April, losing 6.7 points and landing at 46.2. This ends five consecutive months of improving readings and indicates a state of contraction after only one month of expansion. New orders saw the largest drop, down 15 points from March, but strong orders in February and March kept the three-month average at 52.6. On a positive note, supplier deliveries and employment showed signed of growth as they improved on March readings. There is optimism that the current conditions may be short-lived.
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.
The three-month average for the Future Business Index remained optimistic at 65.1.
Find the latest precision machining market research and reporting at GardnerIntelligence.com.
