Gardner Business Index: Precision Machining August 2023

The Gardner Business Index: Precision Machining closed August with an index of 47.1, the highest it has been since May’s 48.5, and up one point from July’s 46.2.

Noteworthy GBI: Precision Machining component activity in August:

• Supplier deliveries stabilized. What had been lengthening since February 2020, at a slower rate beginning two years ago and continuing consistently into May, was flat in August. Should a higher rate of lengthened supplier deliveries develop, it will be considered ‘normal’ at this point — volume-induced rather than pandemic-related.
• Contracting components, production and exports also stayed the course, landing at the exact same rate in August. For perspective, production contracted faster this month in other metalworking segments.
• Employment contracted in August for the first time since before the pandemic, reflecting workforce stabilization along with reduced need according to other GBI components.
• Backlog and new orders continued to contract at a slightly accelerated pace.
• For the second month in a row, the sentiment question (not part of GBI,) indicates more shops believe business will be up in the next 12 months than believe it will be down.

Precision Machining activity contracted in August, closing at 47.1. Photo Credit: Gardner Intelligence

Faster contracting new orders and backlog were joined by employment in August (reported as 3-month moving average.) Photo Credit: Gardner Intelligence