Gardner Business Index: Precision Machining February 2023
In February, GBI: Precision Machining component activity generally changed direction in a good way.
According to Gardner Intelligence, the Gardner Business Index: Precision Machining grew in February for the first time in 5 months, closing at 52.6. This is up 2.8 points versus January’s nearly flat 49.8 index. (See last month’s reading.)
GBI: Precision Machining component activity generally changed direction, in a good way, in February.
- New orders led the way, still contracting in February, but at a slower rate.
- The same can be said of export activity, which contracted more slowly for the second month in a row.
- Backlog joined other components, with slowed contraction in February, which is the first time since it started to contract in September 2022.
- Production went beyond the anticipated flat reading and entered growth mode in February, following 5 months of contraction.
- Employment activity has been growing every month since the end of 2020, but February is the first month in over 6 months that the rate of growth was faster than the previous month.
- In February, supplier deliveries continued a longtime path (beginning August 2021) of lengthening that slowed.
- Cautious optimism suits the message of February’s GBI index and components. The number of components still contracting — and the associated absence of growth — serve to temper expectations.
Precision Machining Index
Precision Machining activity grew in February, closing at 52.6.
Key Components (3-month moving average)
Several components contracted more slowly in February, with one of them (production) entering growth mode.