Moldmaking Activity Accelerated Contraction in July
July’s moldmaking index accelerated contraction for the third month in a row, though the magnitude was considerably less than last month.
Moldmaking activity contracted at an accelerated rate in July, the third month in a row. Accelerated contraction of new orders, production and backlog contributed to July’s overall index decline.
GBI: Moldmaking activity was down 0.9 points in July. Source (All Images) | Gardner Intelligence
The Gardner Business Index (GBI) Moldmaking ended July at a reading of 43.2, down 0.9 points from June, establishing a new low for the year.
Exports contracted faster in July, landing at a value that is the lowest in nearly four years.
Employment was the surprise performer, just barely reaching into expansion territory for the first time in one year, directly following an outlier month of accelerated contraction. Employment likely served to moderate the overall index decline.
Supplier deliveries lengthened more slowly in July, in line with what we would expect based on other GBI metrics (i.e., the sector is not booming).
July’s accelerated contraction in new orders and production drove accelerated contraction of the total index while expansion of employment helped minimize the decline. (This graph shows three-month moving averages.)
Sentiment about future business remains positive, though less so each of the past five months.
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