Economy
PMA Expecting Softening Conditions For Rest of 2015
Written by Sandy Williams
September 23, 2015
The Precision Metalforming Association reports that members are forecasting a slight downturn in business conditions in the next three months. The PMA Business Conditions report is a monthly economic indicator of manufacturing, sampling opinions of 127 U.S. and Canadian metalforming companies.
Average daily shipping levels are expected to decrease slightly, said metalformers, while incoming orders will see a slight increase.
Thirteen percent of metalforming companies surveyed said they have workers on short time or layoff, compared to 11 percent in August and 10 percent a year ago.
“Actual orders and shipments for the average metalforming company for the first seven months of 2015 are dead-flat vs. the same period in 2014, so the outlook expressed in the September Business Conditions Report reflects very well the first two quarters of 2015 and expectations for continued softness for the balance of 2015,” said William E. Gaskin, PMA president.
“Automotive, medical device and aerospace suppliers continue to outperform other markets, with heavy equipment, agriculture/off-highway and oilfield suppliers lagging considerably. Washington continues to send a message of uncertainty to manufacturers as a result of the ongoing stalemate in Congress on approving the 2016 budget that could lead to a return of drastic spending cuts (sequestration) in defense spending, as well as stalemates on meaningful business tax reform and re-authorization of important tax credits used by manufacturers for capital investment, bonus depreciation and R&D spending.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
ISM: Manufacturing expansion loses steam after two months of growth
US manufacturing activity slowed in March after two straight months of expansion, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago Business Barometer rose to 16-month high in March
The Chicago Business Barometer increased for the third-consecutive month in March. Despite this, it still reflects contracting business conditions, as it has since December 2023.
Durable goods orders rise again in February
Transportation equipment led the increase, rising 1.5% to $98.3 billion.
Consumer confidence falls for fourth consecutive month
People remain concerned about inflation, trade policies, and tariffs.
Housing starts ticked up in February
Single-family starts last month hit a rate of 1.10 million, a month-over-month increase of 11.4%, census data shows.