Contraction in Moldmaking Activity Slowed According to GBI
The moldmaking index almost bounced back to November’s reading but stopped one point shy, as most components slowed or stabilized contraction in December.
GBI: Moldmaking activity was up 2.5 points in December. Photo Credit, all images: Gardner Intelligence
Moldmaking activity slowed contraction in December following a high degree of accelerated contraction in November. The Gardner Business Index (GBI) Moldmaking ended December at a reading of 44.5, up 2.5 points.
“Status quo” describes most component activity for this month, meaning stabilized levels of contraction for new orders, backlog, employment, supplier deliveries and exports. Production was the only component to contract faster in December, and the degree was minimal.
Trends in the past three months for exports and employment show incremental upward movement, meaning slowed contraction. Reduced inflation and fewer supply chain concerns may have more shops optimistic about future business (not part of the GBI calculation), thereby driving hiring, and thus the December index’s uptick.
Employment and optimism (indirectly) likely contributed to December’s slowed contraction. (This graph shows three-month moving averages.)
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