Economy
PMA Cautious About 4th Quarter 2014
Written by Sandy Williams
September 20, 2014
The September Precision Metalforming Association (PMA) Business Conditions Report reveals that metalforming companies are less optimistic about the business conditions for the next three months. The number of participants expecting economic activity to decline doubled to 14 percent from 7 percent last month, 51 percent expect no change (down from 53 percent) and 35 percent are expecting an improvement in conditions (down from 40 percent).
A dip in incoming orders is forecast for the next three months, with 49 percent expecting no change (up from 47 percent) and 16 percent expecting a decrease (compared to 10 percent in August).
“PMA member companies are somewhat cautious about the outlook for Q-4,” said William E. Gaskin, PMA president. “While orders and shipments for the first half of 2014 were up vs. 2013 by 5% and 7% respectively, in this month’s Business Conditions Survey 29% reported that current shipment activity is down compared to one year ago, up from 16% in August. Members with employees on short-time or layoff also rose in September to 10 percent, vs. 6 percent in August. Higher costs of raw material, government regulations and uncertainties due to the lack of leadership in Washington, D.C., undoubtedly are some of the reasons manufacturers express concern about near-term growth.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
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)