Cutting Tool Orders Flat in February

Real cutting tool orders were $175.0 million in February 2017, which was the highest level since August 2016. February's orders were down 0.1 percent compared with one year ago. This ended three straight months of growth. But, the annual rate of contraction has decelerated since July 2016 and was -3.6 percent in February. This was the slowest rate of contraction since November 2015.

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.

Also, the GBI: Metalworking showed the metalworking industry is rapidly improving. The month-ove-rmonth rate of change of the index grew for the eighth month in arow. The trend in the index is very positive for cutting tool orders in 2017.