Gardner Business Index: Precision Machining June 2024

The Gardner Business Index: Precision Machining contracted in June, at an accelerated rate for the third month in a row, landing at 44.2, down 1.1 points from May’s 45.3.

GBI: Precision Machining key components contracted at faster rates in June.   

• New orders and production accelerated contraction for the second month in a row.
• June is the first month backlog that also accelerated contraction, and to an appreciable degree.
• Exports continued with slowly accelerated contraction, dropping a little bit each of the past three months.
• Employment contraction has trended the opposite of exports, slowing a bit each of the past three months.
• Supplier deliveries remained long and lengthening, not the result of booming demand such that other variables must be driving the trend.
• Business sentiment, still positive, dropped again in June.
• Precision machining activity is not alone in its concerning trend, suggesting higher level domestic and/or global factors are at play.