GBI Shifts to Second Straight Month of Slowing Contraction

Moldmaking activity contracted for a seventh month in October, though at a slower pace, so that the index appears more in line with what was seen in July. The Gardner Business Index (GBI) Moldmaking, ended the month at 45.5, almost fully recovering the second of two points lost in August.

All components contracted again, though some stabilized or slightly slowed the rate of their contraction. Overall, activity here saw a little bit of everything — movement in every direction, that is — in October. Employment, after significant accelerated contraction in August, contracted a bit more slowly here. Exports, which have paralleled employment for about a year, behaved similarly, albeit at a deeper level of contraction. Production and new orders leveled off in October, though, like all other components, continues to contract as well. Supplier deliveries continued along its new path in contraction territory, while backlog accelerated along its established path of contraction, landing as the lowest component in the moldmaking index.