February GBI: 55.7

With a reading of 55.7, the Gardner Business Index show that durable goods manufacturing grew at an accelerating rate for the fourth month in a row. This month durable goods manufacturing grew at its fastest rate since March 2014 and second fastest rate since March 2012.

The new orders index increased for fourth month in a row, growing at its fastest rate since March 2014. The production index dipped slightly from last month, but the index remained above 60 indicating robust growth. The backlog index increased for the second straight month, reaching its highest level since February 2012. The trend in the backlog index clearly indicated capacity utilization should increase in 2017. Employment increased at an accelerating rate for the fifth month as the index reached its highest level since June 2014. Exports is the one area that continued to contract, although the rate of contraction has steadily decelerated since July 2016. Supplier deliveries lengthened for the 13^th month in a row and at their fastest rate in two years.

Material prices increased at an accelerating rate for the fourth month in a row. The index reached its highest level since the survey began in December 2011. Prices received increased at an accelerating rate for the third month in a row. The rate of increase was the fastest since March 2012. Future business expectations remained as the index reached its highest level ever for the fourth month in a row.

Plants with more than 250 employees grew for the fifth straight month. Facilities with 100-249 employees grew at an accelerating for the fourth consecutive month. February was their first month ever with an index above 60. Companies with 50-99 expanded for the sixth time in seven months. Companies with 20-49 employees grew for the fifth straight month, growing at their fastest rate since the survey began in December 2011. Companies with fewer than 20 employees expanded at an accelerating rate for the second month in a row as their index reached its highest level since November 2014.

The Southeast was the fastest growing region in February. It grew for 10 of the last 11 months. And, February was its fastest rate of growth since March 2012. It was followed by the North Central-West, North Central-East, South Central, and Northeast, all of which had an index above 55 in February. The West had the slowest growth but still had an index of 53.6.

The fastest growing industries were HVAC, industrial motors/hydraulics/mechanical components, primary metals, metalcutting job shops, machinery/equipment, petrochemical processors, forming/fabricating (non-auto), aerospace, pumps/valves/plumbing products, plastics/rubber products, automotive, custom processors, medical, and power generation. Only hardware, electronics/computers/telecommunication, and off-road/construction machinery contracted.

In addition to the overall durable goods index, we compute indices for a number of technologies or processes. For the fourth month in a row, precision machining grew at the fastest rate. Moldmaking grew at an accelerating rate for the fourth month in a row. Metalworking grew at its fastest rate since the survey expanded in December 2011. Finishing grew at a robust rate for the second month in a row. Composites grew at an accelerating rate for the third month in a row. Plastics expanded at a robust rate for the second month.