Moldmaking Index Continues to Show Solid Growth in 2017
October 2017—58.1
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Gardner Business Index: Moldmaking
Growth in new orders, production and supplier deliveries pushed the Moldmaking Index significantly higher in October. The October reading marks an excellent fourth quarter start for the Moldmaking Index after a much more solid, expansionary third quarter reading.
New Orders and Production
A change in the growth of new orders nad production occurred in October. The growth of new orders and production expanded strongly in October with new orders growing faster than production. Historically when this happens, Gardner Intelligence can expect to see backlogs expand in future months. Figures here are measured by 3MMAs (or three-month moving averages). The 3MMA is the average for the last three months of data.
Registering 58.1 for October, the Gardner Business Index (GBI): Moldmaking increased significantly from its point at the end of the third quarter of 2017. Over the last five years, this month’s reading is second only to the record reading that occurred in May 2017. This latest reading brings the 2017 year-to-date Moldmaking Index average to 55.8. For the year-to-date and 12-month periods, the Moldmaking Index changed approximately 6.4 percent and 23 percent, respectively. These changes are significantly different from those reported in September because of a very weak October 2016 reading and a very strong reading in the current month. Gardner Intelligence’s review of the underlying data for the month indicates that new orders, production and supplier deliveries lifted the Moldmaking Index higher, while employment, backlog and exports pulled the Moldmaking Index lower. For the month, no components of the Moldmaking Index contracted. For more information on the Moldmaking Index, visit gardnerintelligence.com.
About the Author
Michael Guckes
Michael Guckes is the chief economist for Gardner Intelligence, a division of Gardner Business Media (Cincinnati, Ohio, United States). He has performed economic analysis, modeling and forecasting work for nearly 20 years among a range of industries. He is available at mguckes@gardnerweb.com.
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