Economic News Blog
Posted by: Steven Kline, Jr. 11. July 2019

Cutting Tool Orders Strong But Slowing

In May, cutting tool orders were $213.4 million, which was the 14th  time in 15 months that orders were more than $200 million. Also, only eight of the last 89 months had a higher total for real dollar orders than May. However, May orders decreased by 3.3% compared with one year ago, which was the third consecutive month of month-over-month contraction. The annual rate of growth decelerated for the fourth straight month to 8.4%, which was the slowest rate of annual growth since January 2018.

The GBI: Metalworking is a good leading indicator of cutting tool orders. The rate of change in the Index began contracting in March and the contraction has accelerated since. The Index is clearly indicating that the annual rate of growth in cutting tool orders will continue to decelerate, if not begin to contract, for the remainder of 2019. The GBI typically leads cutting tool orders by seven-to-10 months.

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