Cutting Tool Orders Increase 8.2 Percent in January

Real cutting tool orders were $173.1 million in January 2017, which was the highest level since August 2016. January's orders were up 8.2 percent compared with one year ago. This was the third straight month of growth. In two of the last three months, the rate of growth was faster than 8.0 percent. The annual rate of contraction hit its bottom back in July. Since, the rate of contraction has decelerated. January's rate of annual contraction, 3.9 percent, was the slowest 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 rate of change of the index grew for the third month in arow. The trend in the index is very positive for cutting tool orders in 2017.