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
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
Beige Book shows concerns about trade policy
Manufacturing was mixed, but two-thirds of districts said activity was little changed or had declined.
New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey