Gardner Business Index: Precision Machining May 2024

The Gardner Business Index: Precision Machining contracted in May at an accelerated rate for the second month in a row, landing at 45.3, down 1.8 points from April’s 47.1.

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

• New orders accelerated contraction the most, with production following suit.
• Exports stay about the same month-to-month, but stepping back and looking at the past 12 months, there is evidence of accelerated contraction over time.
• Somewhat out of sync with other components, employment and backlog showed slowed contraction in May, continuing in directions launched in April and March, respectively.   
• Supplier deliveries lengthened at a steady rate for the fourth month in a row, likely a function of lingering and/or new challenges since volume should not be stressing the system.   
• Business sentiment, still positive, grew slower again in May.
• Precision machining activity is not alone in its trend, suggesting economic factors like interest rates and inflation are at play.