Gardner Business Index: Precision Machining January 2024

The Gardner Business Index: Precision Machining started the new year the way it ended 2023, closing January with an index of 45.9, almost exactly the same as December’s 45.8.

GBI: Precision Machining components were mixed in January, all of them contracting, a couple of them slower; others a bit faster and returning to December levels.

• New orders departed from backlog and slowed contraction in January, the second month in a row.
• Production coincided with new orders in January, also slowing contraction.
• Backlog accelerated contraction, failing to sustain the slight slowing observed in December and landing on par with November.
• Employment and exports behaved most like backlog as far as minimally accelerated contraction in January.
• Supplier deliveries moved from flat to slightly faster lengthening, generally a good sign for business.
• Business sentiment, not part of the GBI calculation, has been on a several month uptick that continued into January. It is, in fact, the highest it has been since May of 2022.

Precision Machining activity contracted in January, closing at 45.9. Source: Gardner Intelligence

Slowed contraction in new orders and production were offset by accelerated contraction in a combination of other components (reported as three-month moving average). Source: Gardner Intelligence