Machine Tool Sales Grow for Second Month in July
According to USMTO, machine tool sales in June were 2,094 units and $392,428,000 in real dollars. Unit sales in June 2013 were 2.3% more than they were in June 2012. After three straight months of month-over-month contraction, machine tool unit sales have grown the last two months. The annual rate of change has been dead flat the last two months. My forecast for June was for 2,400 units. This was too high by 14.6%. However, my year to date forecast improved slightly because of prior month revisions (May was significantly higher than originally reported). My year to date forecast is now 9.9% too high. I still expect machine tool sales to end 2013 about where they were in 2012.
Real dollar sales contracted month-over-month for the 11th time in 13 motnhs. The rate of contraction has been relatively moderate the last two months. The annual rate of change has contracted for seven straight months, accelerating the last three months.
Durable goods production is still growing at a significant rate, but the rate of growth has been slowing down. This generally points toward slower machine tool sales. However, the annual rate of change for real capital goods new orders started growing in June for the first time in five months. This is a very positive sign for machine tool sales. Another positive sign for machine tool sales is that the annual rate of change in the metalworking business index appears to have bottomed out. According to our business index, spending per plant is still growing but at a slower rate.
You can find more on machine tool sales and the leading indicators on our metalworking page.
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