Slowdown of the US economy did not bypass metalworking industry which was also as hard hit as the rest of the country. In May, there were positive signs that the things were getting back to normal with a 6% improvement in the GBI over an all-time low in April. Supply chain deliveries are the only category still lagging in recovery. As the supply side picks up, some businesses report higher costs at a time when their own pricing leverage is weakened. However, even in such environment business sentiment improved driven by the index improvement.
- The Metalworking Index generally indicates that negative business trends are slowing down, thought not yet reversing.
- Supplier deliveries improved a bit in May, suggesting that more suppliers have resumed operations.
- There are also signs of improving sentiment within the metalworking industry.
“The Gardner Business Index (GBI): Metalworking registered a six-point improvement over April’s all-time low reading, ending May at 45.2.”