Text Box: 52.1, the MBI reading for April 2008, indicates a small expansion in the metalworking industry during the month. This reading continues the upward trend of overall business conditions since December 2007, which was the low point in the MBI. The most significant contributors to the expansion in April were employment, exports, and new orders. Despite the job losses across the broad economy, metalworkers were hiring more people to keep up with the work from the energy, medical, and aerospace industries as well as increasing export work due to the low dollar. While new orders grew at a moderate pace, production remained flat for the second month and backlogs decreased. The first quarter GDP release from the Bureau of Economic Analysis indicated that most of country’s growth that quarter came from an increase in inventories. The metalworking industry should keep an eye on this because it could indicate a possible slow down later in the year. In April, material prices increased at their fastest rate since the MBI was started. Most metals, commodities, fuel, and imports were listed as materials increasing in price. Also, metalworkers raised their prices at the fastest rate since the MBI began. Finally, the future business expectations business index slowed noticeably and is now significantly below its average level.
Sub-Indices April March Percentage Point Change   Direction Rate of Change Trend (Months)
New Orders 53.1 44.8 8.3   Growing From Slowing 1
Production 50.0 50.0 0.0   Flat Flat 2
Employment 59.4 57.9 1.5   Growing Faster 3
Backlog 46.9 50.0 -3.2   Slowing From Flat 2
Exports 56.2 50.0 6.2   Growing From Flat 2
Supplier Deliveries 46.8 47.4 -0.6   Lengthening Faster 6
Material Prices 87.5 79.0 8.5   Increasing Faster 16
Prices Received 59.3 55.3 4.1   Increasing Faster 3
Future Business Expectations 59.5 68.4 -8.9   Improving Less 16
               
Overall MBI 52.1 50.0 2.0   Growing From Flat 1