Metalworking Activity Shows Signs of Stabilizing Contraction
Metalworking activity continued to contract in what has become a rather characteristic GBI ‘dance.’
Metalworking activity has contracted nearly every month for over one year, the exception being February 2023, which was flat. Since April 2023, a month of accelerated contraction in metalworking activity has remained stable into the following month. Contraction has tended to accelerate again the month following stability.
December maintained this dance, marking a flat-to-slightly-slower-contracting month, closing at 44.5, 0.8 points higher than November. Stable component activity drives the December GBI. New orders, backlog, employment and exports stabilized, still contracting, while production contracted at a slightly accelerated rate. Business sentiment (not included in GBI calculation) for the next 12 months improved faster in December, but did not play out in components.
The Metalworking GBI continued with a mostly stable December. Photo Credit: Gardner Intelligence
Backlog and new orders are two of December’s mostly stable, contracting components, while future business is more optimistic going into 2024 (3-MMA = three-month moving averages). Photo Credit: Gardner Intelligence
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