Moldmaking GBI Continues its "Spark" in January
Moldmaking activity contracted again in January, but the pace has continued to slow, suggesting that things might be looking up if it continues.
GBI: Moldmaking activity contracted at a slower rate in January, and for the second month in a row. Photo Credit, all images: Gardner Intelligence
The Gardner Business Index (GBI) Moldmaking contracted for the fifth month in a row, closing January at 49.2; this is up two points from December’s 47.2. If the magnitude of changes reported the past two months continues or increases in February, the next report may see growth in moldmaking activity (i.e., a reading of 50 or above).
Changes in these three metrics were “the best” for January. (This graph is on a three-month moving average.)
Five components contracted again in January, four of them more slowly than in December. New orders and production activity pressed the brakes on contraction, while exports and employment activity came closer to tapping them. Employment was essentially flat — showing no growth — in January, with as many shops employing more as employing less than the month prior. Moldmaking’s employment contraction was minimal and short-lived such that it can be considered a blip if January’s direction continues into February. Backlog continued to contract faster, unaffected by slowed contraction in new orders and production. And supplier deliveries continued to lengthen, though more slowly.
Future business is a sentiment metric not included in the GBI calculation, but worth reporting, as current expectations are encouraging — more shops expect business to improve than decline in the next 12 months.
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