Economy
PMA Members Expect Weaker Business Conditions During Next 3 Months
Written by Sandy Williams
May 13, 2015
Metalforming companies are expecting softer business conditions during the next three months according to the May 2015 Precision Metalforming Association (PMA) Business Conditions Report.
More participants surveyed thought economic conditions would remain the same (60 percent up from 58 percent) or decline (16 percent compared to 9 percent in April).
Incoming orders are expected to decline. Participants reported current average shipping days slipped downward in May.
Nine percent of companies reported workers on short time or layoff compared to 7 percent in April and 7 percent in May of 2014.
“PMA’s Business Conditions report for May reflects a typical seasonal adjustment in orders and shipments that generally occurs as we approach the end of Q-2,” said William E. Gaskin, PMA president. “PMA’s confidential Monthly Orders & Shipments Report of a sample of PMA members detailed that actual Q-1 orders and shipments grew by 3% and 2% respectively, vs. 2014, year-over-year. This reflects the slow growth pattern evidenced in GDP and Federal Reserve projections. The automotive sector continues to lead a general economic recovery in manufacturing in the United States.”
The monthly PMA report is an economic indicator for manufacturing, sampling 126 metalforming companies in the United States and Canada.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
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.
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.