Gardner Business Index: Moldmaking Starts 2018 Breaking Records

Registering 60.2 for January, the Gardner Business Index (GBI): Moldmaking expanded at its fastest pace in recorded history. Compared to the same month one year ago and to the average reading for 2017, the Moldmaking Index increased by 9.0 percent and 7.6 percent, respectively. Gardner Intelligence’s review of the underlying data for the month revealed that new orders jumped drastically in January with the new orders reading increasing approximately 12 points since December. The reading for production also showed significant expansion. New orders and production lifted the Moldmaking Index higher while backlog, supplier deliveries and employment minimally impacted the Moldmaking Index. Exports was the only component that significantly lowered the Moldmaking Index during the month. However, no components contracted.

For a second month in a row, new orders expanded faster than production, and it did so by a considerable margin. Reviewing past trends from the Gardner Business Indexes reveals that when growth in new orders exceeds growth in production, it is typical for manufacturers to experience additional growth in future months because manufacturers are adjusting to increased demand.