Gardner Business Index: Precision Machining July 2023
Precision machining activity for July was steady with June.
The Gardner Business Index: Precision Machining ended July with an index of 46.2, about the same as June’s 46.5, which represented a two-point drop versus May.
GBI: Precision Machining component activity saw more of the same in July. Every component slowed expansion or accelerated contraction, with one exception.
- Exports contracted at a fairly steady rate in July.
- Backlog, new orders and production continued to contract at a picked-up pace.
- Production continued to contract, still lagging new orders and backlog, but catching up (or down, as the case may be) is within reach.
- Supplier deliveries lengthened at a continually slowing rate, making supply chain a non-issue according to GBI.
- Employment expanded slowly for another month, landing on the cusp of flat.
A longer-term view is more encouraging per a sentiment that is not calculated as part of the GBI — more shops believe business will be up in the next 12 months than believe it will be down.
Precision Machining activity contracted in July, closing at 46.2. Photo Credit: Gardner Intelligence
Supplier deliveries appear to be a non-issue while employment steadily heads toward flat following months of expansion (3-MMA = three-month moving average). Photo Credit: Gardner Intelligence
