Economy
PMA Pessimism Due To Federal Failure?
Written by Sandy Williams
October 22, 2013
A decline in business activity is forecast for the next three months by metalforming companies participating in the October Precision Metalforming Association (PMA) Business Conditions Report.
Survey participants also expect incoming orders to decline over the next three months. The forecast was similar to September’s predictions but PMA President William E. Gaskin indicated the pessimism may be due to concern over the federal budget situation.
“PMA’s negative October Business Conditions report likely was impacted by dissatisfaction and disappointment among metalforming company executives over the failure of the U.S. Congress and President to firmly resolve federal budget and debt limit issues,” said Gaskin. “The period when the survey was open coincided with the period when political leadership was most lacking. The positive ISM manufacturing index of 56.2 for September and the 55.8 ISM average for the third quarter indicate a bright outlook, which should be borne out in the months ahead. Unfortunately, Congress failed to genuinely resolve its unsettling stand-off and kicked the can down the road, prolonging the uncertainty for businesses that were hoping for clarity about the road ahead.”
Metalformers reported average daily shipping levels dropped in October. Lead times remained steady or slightly shorter for the month.
A smaller percentage of companies reported part of their workforce on short time or layoff—11 percent in October compared to 13 percent in September. In October 2012 metalformers reported 16 percent of workers on short time or layoff.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
AMU: Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.