Moldmaking Accelerated Contraction in June
June’s moldmaking index took a relatively steep downward turn, landing at a new low for the year.
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Moldmaking activity contracted at an accelerated rate in June, the second month in a row. Accelerated contraction of new orders contributed to the overall index decline, as did a turn for backlog, also contracting at an accelerated rate in June. Overall, the Gardner Business Index (GBI) Moldmaking ended June at 44.1, down 3.1 points from May.
GBI: Moldmaking activity was down 3.1 points in June. Source (All images) | Gardner Intelligence
Other components accelerated contraction to varying degrees, production the fastest, followed by exports, which continued a pattern of contracting a little faster one month at a time. Employment had been close to 50 (aka “flat”) before also contracting a bit faster in June.
On the “above 50” side, supplier deliveries continued a trend of lengthening a little faster in June, for no obvious “good” reason like increased demand. There must be “old” and/or new supply chain challenges at play.
June’s accelerated contraction in new orders and backlog drove accelerated contraction in the total index. (This graph shows three-month moving averages.)
Sentiment about future business has become less positive every month since March, following a steady four-month climb.
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