Real Cutting Tool Orders Second Highest Since March 2020
A strong recovery in metalworking, exhibited by the v-shaped recovery in the GBI: Metalworking, has led to strong growth in cutting tool orders for three straight months.
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According to the Cutting Tool Management Report (CTMR) for June 2021 from the Association For Manufacturing Technology (AMT), real cutting tool orders were $174.1 million, an increase of 14.6% compared with one year ago. June was the third straight month of month-over-month growth and was the second consecutive month with a more than 20% increase compared with one year ago. Of course, April through June had easy comparisons with last year because of the economic lockdowns. The annual rate of change in June, -15.7%, contracted at a decelerating rate for the fourth month in a row.
The GBI: Metalworking is a good leading indicator of cutting tool orders and leads cutting tool orders by seven to 10 months. In July, the index was above 50 for the 10th month in a row and the month-over-month rate of change in the index grew for the 12th consecutive month. The annual rate of change grew at an accelerating rate for the fifth consecutive month, indicating that the annual rate of contraction in cutting tool orders will continue to decelerate throughout 2021 as cutting tool orders continue to improve on a month-by-month basis.
