With a reading of 53.4, Gardner’s metalworking business index showed that conditions in metalworking continued to expand at a significant rate in February. The industry has grown four of the last five months, although February’s rate of growth was slightly slower than the rate of growth in January. The index was 7.7 percent higher than it was one year earlier, which is the sixth straight month that has happened.
New orders and production grew for the fifth consecutive month. While the rate of growth slowed slightly for both indices in February, they remain on uptrends that started in August 2013. The backlog index contracted slightly after growing in January for the first time in nearly two years. The trend in backlogs indicates that capacity utilization and capital equipment spending in the metalworking industry should increase in 2014. Employment grew at the same strong rate as January, while exports continued to contract, although at one of the slower rates in the last 18 months. Supplier deliveries have been lengthening at a slightly increased rate since August 2013.
Material prices increased at a faster rate in February and are growing at their fastest rate in a year. Prices received increased for the third month in a row; however, they are increasing at a much slower rate than material prices. Future business expectations were unchanged from January and are at their highest level since March 2012.
The rate of growth increased at facilities with 20 or more employees, while shops with fewer employees contracted once again after growing in January.
Future capital spending plans fell 20.4 percent compared with one year earlier. This was the second month in a row that the month-over-month rate of change contracted. The annual rate of change contracted in February after growing the previous three monthsblog comments powered by Disqus