Fewer manufacturers optimistic about the economy

It’s a turnaround from January, when most manufacturers expected economic activity to hold steady in the next three months, with 54% anticipating no change in activity, up from 49% in December. That same month, the share of manufacturers who were optimistic about the next three months rose by 5% to 35%.

The April report revealed manufacturers also forecast a drop in incoming orders, with 26% expecting a decline in orders in the next three months, 47% predicting no change, and 27% expecting an increase in orders.

“Metalformers are navigating continued economic uncertainty, with declining confidence in near-term conditions and softening order volumes,” said PMA President David Klotz. “Ongoing unpredictability surrounding US trade policy is likely a major factor behind these forecasts — particularly the widening gap between US steel prices and those in the rest of the world, which impacts a key input for our members.”

“Some are seeing increased interest from customers looking to reshore production as a result of the tariffs, which is encouraging,” Klotz continued. “However, proposals to eliminate critical programs like the federal Manufacturing Extension Partnership are deeply concerning. If we want to strengthen domestic manufacturing and compete globally, we need continued support for programs that help small and medium-sized manufacturers modernize and innovate.”

In terms of labor, the survey showed that only 4% of respondents had workers on short time or layoff in April (down from 12% in March), while 34% are expanding their workforce (the same percentage reported in February and March).

Twelve percent of respondents reported an increase in lead times in April, compared to 14% in March.