Economy

PMA Members Expect Weaker Business Conditions During Next 3 Months

Written by Sandy Williams


Metalforming companies are expecting softer business conditions during the next three months according to the May 2015 Precision Metalforming Association (PMA) Business Conditions Report.

More participants surveyed thought economic conditions would remain the same (60 percent up from 58 percent) or decline (16 percent compared to 9 percent in April).

Incoming orders are expected to decline. Participants reported current average shipping days slipped downward in May.

Nine percent of companies reported workers on short time or layoff compared to 7 percent in April and 7 percent in May of 2014.

“PMA’s Business Conditions report for May reflects a typical seasonal adjustment in orders and shipments that generally occurs as we approach the end of Q-2,” said William E. Gaskin, PMA president. “PMA’s confidential Monthly Orders & Shipments Report of a sample of PMA members detailed that actual Q-1 orders and shipments grew by 3% and 2% respectively, vs. 2014, year-over-year. This reflects the slow growth pattern evidenced in GDP and Federal Reserve projections. The automotive sector continues to lead a general economic recovery in manufacturing in the United States.”

The monthly PMA report is an economic indicator for manufacturing, sampling 126 metalforming companies in the United States and Canada.

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