Cutting Tool Orders Contract in April

Real cutting tool orders were $168.0 million in April 2017, which was the lowest total in 2017. Comapred with one year ago, orders contracted 4.3 percent, which basically was the first time orders contracted since October 2016. The annual rate of contraction has decelerated since July 2016 to -1.0 percent in April. This was the slowest rate of contraction since 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.

Also, the GBI: Metalworking showed the metalworking industry is rapidly improving. The month-ove-rmonth rate of change of the index grew for the 10th month in a row and the annual rate of change has grown at an accelerating for six months. The annual rate of growth in May was the fastest since March 2011.