Economy
PMA Members Expecting Slower Business Conditions
Written by Sandy Williams
June 17, 2014
A downturn in business conditions is coming, said participants in the Precision Metalforming Association (PMA) Business Conditions Report for June. Fewer participants are expecting conditions to improve in the next three months (31 percent, down from 33 percent) and more are expecting that economic activity will decline (15 percent, up from 7 percent). PMA president William Gaskin says the downward shift is part of the summer slowdown typical in the manufacturing cycle.
Incoming orders are expected to decline somewhat in the short term during the next three month period. Average daily shipping levels in June declined according to PMA participants, with 46 percent reporting levels are the same as three months ago and 19 percent (up from 15 percent in April) reporting a decrease.
The percentage of companies reporting workforce on short time or layoff increased one point in June to 8 percent.
“Recent feedback from members during executive roundtables in the Twin Cities and Indiana, and reports of business conditions during PMA’s recent Board of Directors meeting, indicates that orders and shipments remain stable with modest growth anticipated during the balance of the year, unless global security issues escalate to the extent that they lead to a disruptive situation for the overall U.S. or global economy,” said Gaskin.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
New York state manufacturing falls back into contraction
After a brief pickup in September, manufacturing activity in New York state retreated into contraction, according to the October Empire State Manufacturing Survey.
Dodge Momentum drops on moderating data center growth
Slowing growth in data center planning caused the Dodge Momentum Index (DMI) to pull back in September. The decline followed five months of growth after the index hit a two-year low in March.
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
ISM: Manufacturing contracts again in September
US manufacturing activity contracted for the sixth consecutive month in September, according to the latest report from the Institute for Supply Management (ISM). The index has indicated a contracting industrial sector for 22 of the past 23 months.
Chicago Business Barometer remains gloomy in September
The Chicago Business Barometer increased marginally in September but continues to indicate deteriorating business conditions.