Metalworking Index Holds Expansion in May

The Gardner Business Index (GBI): Metalworking measures the current state of metalworking and machining activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion, and below 50 indicates contraction.

The Metalworking Index held in expansion in May at 56.2. Source (all figures): Gardner Intelligence

Now in its fifth consecutive month of expansion, the Metalworking Index continues to indicate enduring strength in the metalworking industry. The Index saw a small dip of 0.6 points in May for a reading of 56.2. Looking at individual components, May brought a mixed bag of results netting a modest decline in the overall index. Employment saw the strongest month-over-month growth, gaining nearly three points for its best month since February. On the other side, exports, the only component below 50, decreased nearly three points. Material prices accelerated for the seventh consecutive month, nearing record highs. This is undoubtedly weighing on the Future Business Index. Despite an overall strong reading, it has dropped several points over the last few months and now stands at 66.4.

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The GBI Components Scorecard reports the monthly change rate of primary metalworking market factors contributing to the overall monthly index reading.

On a three-month average basis, five of six components remain in expansion. Exports is again the only component below 50, while production and supplier deliveries hold strongest above 60.

Reading the Scorecard:

• Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion, and red indicates contraction.
• Shade indicates a value’s distance from 50. The darker the shade, the further from 50.
• Direction indicates a value’s change versus the previous period. Pointing up is always better.

The GBI Future Business Index is an indicator of the future state of the metalworking market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion, and under 50 is contraction.

The Future Business Index remains optimistic but continues to soften, easing to a three-month average of 66.4 in May.

Find the latest metalworking market research and reporting at GardnerIntelligence.com.