Published 09/11/2026

Metalworking Index Softens in August, But Production Strengthens

New orders and hiring pulled back, trimming the reading to 54.8, but a stronger production pace and easing costs kept the market's eighth straight month of expansion intact.

Economics

Mike Shirk

Senior Market Research Analyst, GROW Industrial Intelligence

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 eased to 54.8 in August, its eighth consecutive month of expansion.
Source (all figures): Gardner Intelligence

The Metalworking Index eased nearly a point in August to a reading of 54.8, marking an eighth consecutive month of expansion. Beneath the softer headline, the components split: production strengthened more than a point and a half to 60.2, its highest mark in months, while new orders fell three points and employment nearly did the same, pulling the average down. Backlog held roughly steady and supplier deliveries stayed elevated at 63.2, consistent with shops still busy enough to keep lead times stretched, while exports slipped to 46.4 and remained the Index’s only component below 50. The clear positive was on costs. Material prices eased for a third straight month while prices received increased nearly two points, easing the margin pressure that has been present for the better part of the year.

The Future Business index held steady, with its three-month average nearly flat and keeping optimism firmly intact.

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 sit in expansion with exports as the lone holdout. All six remain above their year-ago levels.

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.