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With a
reading of 57.0, the MBI showed that the metalworking industry has grown
steadily faster in the first quarter of 2012. March’s index was the fastest
rate of growth for the metalworking industry since September 2011. Also, it
is the third fastest rate of growth since February 2011.
The most significant contributors to the faster rate of growth were new
orders, production, and backlogs. The rate of growth in new orders has seen a
sharp increase since December 2011, pushing the new orders index to its
highest level since January 2011. The production index also has seen
significant gains since the beginning of 2012. Production at metalworking
facilities is growing faster than at any time since June 2011. The growth in
new orders continues to outpace the growth in production though. Therefore,
backlogs have continued their trend of faster growth.
Also contributing to the growth of the MBI in March was the supplier
deliveries index, which moved up to 59.2 from 57.3. With supplier deliveries
getting longer, this indicates strength throughout the manufacturing sector.
The employment index grew for the 11th consecutive month, but at a slower
rate than February. And, with the dollar gaining on other world currencies,
the export index contracted for the fifth time in the last six months.
Future business expectations remain strong. The index showed metalworking
facilities are slightly more optimistic about their business than they were
last month. This continues the trend of improving business expectations that
began in October 2011. Finally, since September 2011, the average spending on
metalworking equipment for the next 12 months has improved. This indicates
that machine tool sales should remain strong for at least the next quarter or
two.
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