July Cutting Tool Orders Down 17.5 Percent

Real cutting tool orders were $147.0 million in July 2016. This was the lowest total for cutting tool orders since December 2013. July's orders were 17.5 percent below the order level of last July. This was the fastest rate of month-over-month contraction this cycle, which began in May 2015. Also, it was the second time in four months that cutting tool orders contracted more than 10 percent. In July, the annual rate of contraction accelerated to its fastest since it began contracting in October 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.