Cutting Tool Orders Increase for Fourth Time in Five Months
Real cutting tool orders were $181.9 million in January 2015. This was the second highest level of cutting tools sold since October 2013. Also, it was 1.9% more than the order total for January 2014. This was the fourth time in five months that the month-over-month rate of change increased. The annual rate of change has grown at an accelerating rate each of the last two months.
For January my forecast was too low by 10.9%. My 2015 forecast is calling for cutting tool orders to increase 4.8%.
While there is not much history to work from with this report, there are a number of potential leading indicators for this data series, including durable goods production, capital goods new orders, and the Gardner Business Index. Based on the limited time frame, the metalworking portion of the Gardner Business Index has potential to be a good leading indicator for cutting tool orders.
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