Metalworking Activity Flattens in September

An index of 50 means the average of the six GBI components is equal — components on the upswing are offset by components on the downswing, with some components flat themselves. With the exceptions of supplier deliveries and employment, all metalworking GBI components are flat or contracting in September, and backlog is contracting in September for the first time since the start of 2021. New orders, which started to contract in July, contracted at a faster rate in September.

Production ended the month flat, with the same proportion reporting “more” as reporting “less” production in September relative to August. Employment is the sole component still in genuine growth mode (lengthening of supplier deliveries is an artifact of supply chain issues), inching closer to flat each of the past four months. Export activity continued its path of contraction at about the same rate.