Economy

PMA Expects Downturn Over Next 3 Months

Written by Sandy Williams


Metalformers are expecting a downturn in business conditions during the next three months according the May 2017 Precision Metalforming Association (PMA) Business Conditions Report. The PMA report is an economic indicator for manufacturing, sampling 117 metalforming companies in the United States and Canada.

Participants were less optimistic about improvement in general economic activity during the next three months. In May, 33 percent of participants predicted improvement (down from 45 percent in April), 55 percent expect no change (up from 47 percent), and 12 percent expect activity to decline (compared to 8 percent previously). Incoming orders are also expected to drop.

Current average daily shipping levels declined slightly in May with 45 percent of participants reporting shipping levels above three month ago levels, compared to 54 percent in April.

Only five percent of metalforming companies reported a portion of their workforce on short time compared to 6 percent in April and 15 percent in May 2016.

SMU Note: PMA President Emeritus, William Gaskin, will be part of a trade panel at this year’s SMU Steel Summit Conference in Atlanta on August 28-30, 2017. More details can be found at: www.SteelMarketUpdate.com/Events/Steel-Summit

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