For the year-to-date period, the index has averaged 55.5 and increased by approximately 1 percent in 2017.
Gardner Intelligence believes that manufacturing will experience modest expansion in 2018 with U.S. machine tool orders up approximately 5 percent.
The latest reading set a record high not experienced since before 2012.
Production and employment sustain index growth.
Compared with a year ago, the index has signaled that the machining industry has been consistently growing each month since the fourth quarter of 2016.
The Gardner Business Intelligence (GBI) Production Machining index registered 53.1 for July. The index is more than 20 percent above its July value from one year ago.
The combined results of a strong global growth of both passenger and freight air transport demand followed by strong demand for new aircraft and increasing competition between aircraft manufacturers should point to a robust aerospace market for years to come.
Production Machining Business Index is holding steady.
Given the large delta between prices received and input costs, it may only be a matter of time before rising input costs are passed along to machine consumers.
We project that this year will be another year in which sales stay on their high plateau of recent years.
Gardner Business Intelligence (GBI) is the research arm of Production Machining’s parent company, and we gather our data from several industries that our magazines cover. As we look into this year and beyond, we see both positive and negative developments influencing the manufacturing and related industries that are important to our readership.