Components Drive Downturned Activity in Moldmaking GBI
Gardner Intelligence reports a steady contractionary period for the November Gardner Business Index (GBI) Moldmaking.
GBI: Moldmaking has contracted for the past three months. Photo Credit, all images: Gardner Intelligence
The Gardner Business Index (GBI) Moldmaking contracted for the third month in a row, closing November at 45.2 compared to October’s 47.1. Expansion started slowing in April of this year, with activity reaching its current contractionary period beginning in September. November marks eight straight months of downturn in activity.
Collectively, the moldmaking components resemble a waterfall, all six trending down since April/May. Exports was the first component to contract, beginning in January, with employment contracting for the first time (barely below 50) in November. Only supplier deliveries has dodged contraction thus far, but it has been steadily heading in that direction for close to a year, in part reflecting a lessening in supply chain challenges. Backlog and new orders activity continue to trend hand in hand, contracting to a new level in November. The trend will sustain if new orders don’t pick up to refill pipelines.
Backlog continued to contract in November, with new orders doing the same, the combination suggesting that a turnaround is likely not on the horizon. (This graph is on a three-month moving average.)
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