Index Eases After Setting Consecutive Record Highs

After setting an all-time high in both May and June, the Moldmaking Index fell over three points in July with a 60.5 reading, yet remains above the former high established in 2018. July’s overall result—the average of six component readings—was supported by supplier delivery and new orders activity. New orders, production, backlog and employment activity all registered slowing growth. The spread between new orders and production activity narrowed due to a relatively sharper slowing of new orders levels. This resulted in a nearly nine-point decline in backlog activity, suggesting that backlogs grew far more slowly in July than in May or June. Regardless, backlogs continue to expand at historically fast levels.

According to surveyed respondents, supplier delivery times are being made worse by increasing material prices. The proportion of the molding community reporting increasing material prices, for example, has risen nearly every month since April of 2020. In the three-month period ending July, the average reading of 90.7 indicates that between 82% and 91% of all respondents have been reporting month-over-month price increases during the summer months.