Cutting Tool Orders Continue Decline in October

Real cutting tool orders were $169.0 million in October 2016. October's orders were down 4.5 percent compared with one year ago. This was the second month in a row orders contracted, but there has been only one month of growth (August) since April 2015.However, the annual rate of contraction hit its bottom back in July. Since, the rate of contraction has decelerate. It appears that cutting tool orders will end 2017 down between 5 to 7 percent.

The trend in durable goods new orders, which is a good leading indicator of cutting tool orders, appears to be moving in a positive direction for future cutting tool orders. Durable goods new orders generally have contracted at a decelerating annual rate since October 2015.