Economy
PMA Expects Steady but Positive Economic Conditions in Next Three Months
Written by Sandy Williams
May 15, 2014
Metalforming companies are predicting little change in economic conditions in the next three months, according to data from the May 2014 Precision Metalforming Association (PMA) Business Conditions Report. Incoming orders are also expected to remain relatively unchanged during the period.
Current daily shipping levels declined in May compared to three months ago according to those surveyed. When compared with levels from a year ago, 45 percent say shipping levels are higher. The percentage of companies with workforce on short time or layoff declined to 7 percent from 8 percent last month.
“PMA’s manufacturing members are very positive about current business conditions, with 45% reporting that shipment activity is up vs one year ago, 34% reporting unchanged shipping levels and 21% reporting shipping levels below one year ago (among the lowest percentage in the past two years),” said William E. Gaskin, PMA president. “Some 93% of metalforming companies expect the general economic outlook for next three months to be positive, consistent with the most recent PMI reading of 54.9% for manufacturing (up 1.2% from the prior month). The April PMI report also noted that two of the largest consuming markets for metal parts and components—transportation equipment and fabricated metal products—ranked as the sixth and seventh most positive manufacturing sectors out of the 17 sectors tracked. The typical PMA member experienced 8% higher shipments in Q-1 of 2014 vs 2013, with 10% growth in March vs February, according to PMA’s separate Monthly Orders and Shipments Report.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Manufacturing in New York state contracts again
However, companies are growing more optimistic about the future.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Beige Book finds growing economic, policy uncertainty
All districts reported "hesitancy and a cautious approach to business and household decisions,” according to the Beige Book.
ISM: Manufacturing continues to contract in May
May marks the third consecutive month US manufacturing activity declined, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago PMI decreases 4.1 points in May
The Chicago Business Barometer reports that decreases in new orders, order backlogs, and softer production pulled the index down by 4.1-points to 40.5, in May.