Economy
PMA Members Expecting Slower Business Conditions
Written by Sandy Williams
June 17, 2014
A downturn in business conditions is coming, said participants in the Precision Metalforming Association (PMA) Business Conditions Report for June. Fewer participants are expecting conditions to improve in the next three months (31 percent, down from 33 percent) and more are expecting that economic activity will decline (15 percent, up from 7 percent). PMA president William Gaskin says the downward shift is part of the summer slowdown typical in the manufacturing cycle.
Incoming orders are expected to decline somewhat in the short term during the next three month period. Average daily shipping levels in June declined according to PMA participants, with 46 percent reporting levels are the same as three months ago and 19 percent (up from 15 percent in April) reporting a decrease.
The percentage of companies reporting workforce on short time or layoff increased one point in June to 8 percent.
“Recent feedback from members during executive roundtables in the Twin Cities and Indiana, and reports of business conditions during PMA’s recent Board of Directors meeting, indicates that orders and shipments remain stable with modest growth anticipated during the balance of the year, unless global security issues escalate to the extent that they lead to a disruptive situation for the overall U.S. or global economy,” said Gaskin.
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.