Gardner Business Index: Precision Machining September 2023

The Gardner Business Index: Precision Machining closed September with an index of 44.7, down 2.4 points from August’s recent high of 47.1.

GBI: Precision Machining data suggests that some components contributed to the decline more than others.

Production and new orders continued to contract at a slightly accelerated pace, each dropping around one point in September.
Supplier deliveries remained stable in September, lengthening at a slow and steady pace since July 2023.
Newly contracting component, employment, contracted again in September, posting a slightly accelerated rate compared to August.
Backlog maintained position as the component that contracted the most, doing so at an accelerated rate each of the past five months.
Exports have contracted about a year longer, but to a lesser degree, than backlog; September’s rate was consistent with the three months prior.
The sentiment question (not part of the GBI index) continued to indicate more shops believe business will be up in the next 12 months than believe it will be down.

Precision Machining activity contracted in September, closing at 44.7. Photo Credit: Gardner Intelligence

Production and new orders contracted at slightly accelerated rates again in September (reported as 3-month moving average). Photo Credit: Gardner Intelligence