September Orders See Monthly Growth, But Lag Behind 2014
Though statistics point to a market softening as we move into 2016, there are reasons to be optimistic, says AMT – The Association For Manufacturing Technology.
September 2015 manufacturing technology orders in the U.S. saw a monthly gain of 10.9 percent from August, but overall stand at 16.6 percent down for the first three quarters of 2015 compared to 2014, according to the latest United States Manufacturing Technology Orders (USMTO) report from AMT - The Association For Manufacturing Technology.
“Considering the growth in orders we’ve seen over the past two years, this decline is not as bad as it sounds,” says AMT President Douglas K. Woods. “It’s important to remember that 2014 was a top- performing year, and that some leveling off to minor pullbacks are expected.”
Energy costs, a stronger dollar and weakness in the global economy are having an impact on capital investment, but there are several factors working in favor of manufacturing. October marked the 77th consecutive month of a manufacturing expansion, according to the Institute for Supply Management; the trade deficit narrowed in September to its lowest level in seven months; and the two-year budget deal just signed by President Barack Obama is said to avert the possibility of a government shutdown and default through the 2016 elections, injecting a certain level of certainty into the business environment.
“Our forecasters predict this market softness will last at least through the 1st quarter of 2016, but it could turn around sooner rather than later,” Mr. Woods says. “Overall, we are looking positively at 2016, as we anticipate an upturn in time for IMTS.”
Pat McGibbon, VP – Strategic Analytics for AMT, reports and interprets September’s numbers.
