Precision Machining Index Continues Recovery Climb

The Gardner Business Index (GBI): Precision Machining measures the current state of precision machining activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion, and below 50 indicates contraction.

The Precision Machining Index took another positive step in January landing at 48.9. Still short of expansion, activity continues to trend in the right direction. Employment, production, new orders, and back logs all improved compared to month and year-ago readings.

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The GBI Components Scorecard reports the monthly change rate of primary precision machining market factors contributing to the overall monthly index reading.

Reading the Scorecard:

• Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion, and red indicates contraction.
• Shade indicates a value's distance from 50. The darker the shade, the farther from 50.
• Direction indicates a value’s change versus the previous period. Pointing up is always better.

Nearly all components in the GBI Components Scorecard returned positive results compared to the previous month and year readings. Supplier deliveries remains the only component experiencing expansion, but recent gains in employment, production and new orders could lead to more components shaded green in the coming months.

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The GBI Future Business Index is an indicator of the future state of the precision machining market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.

The Future Business Index continued to climb in January with a reading of 75.7, a level not seen since May 2018. If positive market conditions continue this optimism should translate to expansion activity soon.

Find the latest precision machining market research and reporting at GardnerIntelligence.com.