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.
Precision Machining activity contracted faster in May, closing at 45.3. Source: Gardner Intelligence
New orders, production and exports contracted at accelerated rates in May(reported as three-month moving average). Source: Gardner Intelligence
