Cutting Tool Orders Contract 7.4 Percent in June

Real cutting tool orders were $175.4 million in June 2016. This was the second highest total for cutting tool orders since October 2015. June's orders were 7.4 percent below the order level of last June. This was the fourth time in the last five months that the month-over-month rate of contraction was in single digits, which compares with five straight months in double digits from September 2015 to January 2016. However, the slower rate of contraction has not been enough to cause the annual rate of change to bottom out. Although that should happen fairly soon. The trend in durable goods new orders, which is a good leading indicator of cutting tool orders, appears to be turning positive for future cutting tool orders. Durable goods new orders generally have contracted at a decelerating annual rate since October 2015.