Economy
Metalformers Apprehensive About Business Conditions
Written by Sandy Williams
September 3, 2019
The metalforming sector continues to express uncertainty about near-term business conditions, according to the August 2019 Precision Metalforming Association Business Conditions Report.
The August report shows that 27 percent of participants anticipate an improvement in economic activity during the next three months (an increase from just 16 percent in July), 46 percent expect no change in activity (a decrease from 60 percent in July), and 27 percent predict a decline in activity (as compared to 24 percent last month).
“This month’s report indicates that metalformers continue to be apprehensive about near-term business conditions,” said PMA President David Klotz. “This likely stems from ongoing trade tensions, upcoming political elections and warnings of an economic slowdown.”
New orders are expected to stay about the same in the next three months, said 43 percent of firms responding to the survey, while 28 percent expect an increase in orders and 29 percent a decline.
Current average daily shipping levels have declined, reported 37 percent of metalforming companies compared to 26 percent in the previous months. Thirty-eight percent said levels are the same, while 25 percent reported that shipping levels are higher than three months ago.
Those companies with workers on short time or layoff increase to 10 percent in August from 9 percent in July. A year ago, only 4 percent of companies reported workers on short time or layoff.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
ISM: Manufacturing contracts again in September
US manufacturing activity contracted for the sixth consecutive month in September, according to the latest report from the Institute for Supply Management (ISM). The index has indicated a contracting industrial sector for 22 of the past 23 months.
Chicago Business Barometer remains gloomy in September
The Chicago Business Barometer increased marginally in September but continues to indicate deteriorating business conditions.
Consumer confidence sours in September
The Conference Board reported that consumer confidence in the US dropped to one of the lowest readings of the year in September. With concerns mounting about business conditions and the labor market, the tumble was the biggest monthly decline since August 2021.
September energy market update
In this Premium analysis we cover oil and natural gas prices, drilling rig activity, and crude oil stock levels in North America. Energy prices and rig counts are advance indicators of demand for oil country tubular goods (OCTG), line pipe, and other steel products.