The Precision Metalforming Association expects continuing weaker business conditions for the next three months. The PMA’s October Business Conditions Report showed a “minor, but continuing,” downturn in economic activity along with anticipation that orders will soften in the coming months.
Current daily shipping levels dipped in October with 33 percent of survey participants reporting a decrease in shipping levels (up from 31 percent in September).
Metalforming companies reported 18 percent of their workforce on short time or layoff compared to 13 percent in September and 7 percent in October 2014.
“Metalforming companies report that their current daily shipping levels have declined modestly each month for six consecutive months, after peaking in April 2015,” said William E. Gaskin, PMA president. “Expectations for incoming orders also indicate continued softness after peaking in January 2015, when 50% of PMA’s metalforming companies expected orders to increase during a rolling three-month period, to 33% in October.
”One-third of PMA’s manufacturing members also reported that their current average shipping levels are below their shipments of three months ago, rising from only 11% in April 2015. PMA’s October Business Conditions Report closely correlates to the recent softening of the Institute of Supply Management’s PMI® Index, which was 50.2% in September 2015, the lowest reading since May 2013, when the PMI registered 50.1%. The good news is that some 67% of PMA members still report that their current average daily shipments are the same as (43%) or higher (24%) than they were three months ago, with automotive suppliers continuing to be the most optimistic.”
The PMA Business Conditions report is a monthly economic indicator of manufacturing, sampling opinions of 120 U.S. and Canadian metalforming companies.
Sandy WilliamsRead more from Sandy Williams
Latest in Economy
AISI explains new PM2.5 air-quality regulation’s impact on steel
The US already had strict regulations on air-quality standards for particulate matter, but they are going to get even tighter.
Architecture Billings Index remains soft in January
The Architecture Billings Index (ABI) reading from the American Institute of Architects (AIA) and Deltek showed a slight uptick in January but continued to signal soft conditions. The index inched up from 45.4 in December to 46.2 in January. While the index has moved higher consecutively each month since October, it remains in contraction territory. […]
Manufacturing remains sluggish in New York state
Manufacturing activity in New York State continued to shrink this month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
Housing starts drop again in January
US housing starts fell for the second consecutive month in January, according to the most recent data from the US Census Bureau.
Consumer confidence accelerated in January
Consumer confidence in the US rose in January and accelerated to a two-year high, The Conference Board reported. Results came amid slacking inflation and expectations that the Federal Reserve could soon start cutting interest rates. The headline Consumer Confidence Index rose to 114.8 in January from a downwardly revised 108.0 in December. The index, which […]