Economy
PMA Survey Indicates Steady Conditions for Next 3 Months
Written by Sandy Williams
June 29, 2016
Metalforming companies surveyed in June are expecting little change in business conditions during the next three months. The June 2016 Precision Metalforming Association sampled 120 metalforming companies in the U.S. and found most expect economic activity to remain steady.
Orders are expected to remain at stable, with 51 percent predicting no change compared to 44 percent in May. The survey results revealed current average daily shipping levels dipped in June with only 33 percent of participants reporting current levels as higher than three months ago compared to 39 percent in May.
Only 12 percent of metalformers reported less workforce on short time or layoff in June compared to 15 percent the previous month. In June 2015 only 7 percent reported employees on short time or layoff.
“Flat business conditions reported by member companies in PMA’s June Business Conditions Report reflect the Federal Reserve’s view that manufacturing industrial production grew by only 0.5% during Q-1 vs 2015’s fourth quarter,” said William E. Gaskin, PMA president. “Motor vehicles and parts production continue to be the strongest sector for the metalforming industry, with computer/electronic products, medical equipment, home appliances and non-residential construction following. Sharp price increases for flat-rolled steel, a result of the recent imposition of antidumping duties on imports, are significantly impacting the competitiveness of metalforming companies producing an end product or components where raw-material cost increases must be passed directly to their customers.”
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.