Gardner Business Index: Precision Machining April 2024

The Gardner Business Index: Precision Machining contracted in April at a slightly accelerated rate, landing at 47.1, down 1.2 points from March’s 48.3.

GBI: Precision Machining components mostly contracted at slower or steady rates.

• New orders slowed contraction a little while production leveled off, ending a second month at just below 50.
• Backlog also contracted at a slightly slower rate, with the value significantly lagging other component values.
• Employment continued its up-and-down pattern, slowing contraction in April after accelerating contraction in March.
• Exports has contracted at the same rate since June 2023.
• Supplier deliveries held steady in expansion, lengthening for the third month in a row.
• Business sentiment — still positive — grew slightly slower in April.
• Ups and downs in precision machining activity are typical for the past year, but the interruption in what had been four months of slowing contraction merits monitoring, potentially indicating growing conservatism as interest rates and inflation fail to come down.