Gardner Business Index: Precision Machining August 2023

The Gardner Business Index: Precision Machining closed August with an index of 47.1, the highest it has been since May’s 48.5, and up one point from July’s 46.2.

Noteworthy GBI: Precision Machining component activity in August:

• Supplier deliveries stabilized. What had been lengthening since February 2020, at a slower rate beginning two years ago and continuing consistently into May, was flat in August. Should a higher rate of lengthened supplier deliveries develop, it will be considered ‘normal’ at this point — volume-induced rather than pandemic-related.
• Contracting components, production and exports also stayed the course, landing at the exact same rate in August. For perspective, production contracted faster this month in other metalworking segments.
• Employment contracted in August for the first time since before the pandemic, reflecting workforce stabilization along with reduced need according to other GBI components.
• Backlog and new orders continued to contract at a slightly accelerated pace.
• For the second month in a row, the sentiment question (not part of GBI,) indicates more shops believe business will be up in the next 12 months than believe it will be down.