Economy

August PMA Index Indicates Flat Conditions Ahead

August 19, 2015

Not much new activity to report for metalforming companies. The August 2015 Precision Metalforming Association (PMA) Business Conditions Report showed members expect little change in business conditions for the next three months. Overall economic activity is expected to be slightly better with 26 percent predicting an increase in activity, up from 18 percent in July.

A sampling of 127 metalforming companies in the U.S. and Canada revealed orders are expected to remain about the same for the next three months. Members report average daily shipping levels decreased slightly in August.

Eleven percent of companies reported workforce on short time or layoff, the same percentage as July.

“PMA member companies are somewhat less optimistic today than they were one year ago, but overall their outlook for the next quarter is favorable,” said William E. Gaskin, PMA president. “The automotive industry remains quite robust, but a number of other important markets, such as heavy equipment, energy-related industries and construction, continue to lag growth expectations. At a recent PMA CFO Roundtable, there was modest concern expressed about slower growth, due to the strong dollar and the expectation that the Federal Reserve might begin raising interest rates. However, it was nearly universally believed that single-digit percentage growth in orders and shipments would continue as long as there were no sudden shocks due to adverse domestic or global events.”