Moldmaking Industry GBI Snuck Into Growth Territory in March
Growing for the first time since August 2022, the Gardner Business Index (GBI) Moldmaking ended March at 50.9, somewhat against the odds given the market developments that month.
Moldmaking Index activity eked out a transition into growth territory in March. Photo Credit, all images: Gardner Intelligence
The recently stubborn Gardner Business Index (GBI): Moldmaking busted the “flat,” barrier in March, ending at 50.9, up 1.2 points from February. Somewhat against the odds, given failing banks and rising interest rates, moldmaking activity ended the month in growth mode (just barely) as predicted last month, a first since August 2022. The timing may prove challenging from a “can it grow more (or at least sustain)?” standpoint in light of market dynamics.
In March, all six GBI components continued on their paths in or toward expansion. Three components, exports, backlog and new orders, continued to contract at even slower rates. In fact, new orders contraction has slowed so much that it ended March on the cusp of 50 between contraction and expansion. Production grew at a faster rate again in March while employment continued to speed up expansion; moldmaking appears to be poised for growth in new orders that hopefully materialize. Supplier deliveries also continued the trajectory that started over one year ago, that is, lengthening at a slowing pace. This component has permission to stabilize, with the worst of the supply chain woes behind us and what appears to be reasonably healthy manufacturing activity all around.
Overall, March looks good for moldmaking activity, which is particularly encouraging in light of market dynamics, and timely given MMT’s 25th anniversary.
Production and employment expanded faster for a second month in a row, perhaps anticipating growth in new orders that have been contracting more slowly for three straight months. (This graph is on a three-month moving average.)
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