Cutting Tool Orders Increase 8.8% in November

Real cutting tool orders were $168.7 million in November 2016. November's orders were up 8.8 percent compared with one year ago, which was the fastest rate of growth since December 2014. This was the second time in four months that orders increased. The annual rate of contraction hit its bottom back in July. Since, the rate of contraction has decelerated. November's rate of annual contraction was the slowest since December 2015. It appears that cutting tool orders will end 2017 down between 5 to 7 percent.

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.