October 2016 Manufacturing Technology Orders Grew Slightly from 2015
The U.S. Manufacturing Technology Orders report for October 2016 saw year-over-year gains for the third consecutive month and a 0.2 percent gain compared to October 2015. For the year, orders were down 5.6 percent compared to the same point of 2015.
Month over month, order value dropped 32.9 percent compared to September 2016, which accounted for high order volume generated by IMTS – The International Manufacturing Technology Show. September 2016 had the highest order volume since September 2014 when IMTS was last held.
Orders have begun to increase slowly in recent months, and other signs indicate that the manufacturing economy is improving. The November 2016 PMI from the Institute for Supply Management jumped to 53.2 from 51 in October, suggesting growth in manufacturing in the next 30 to 90 days. Housing starts grew 25.5 percent in October, good news for manufacturers who make appliances, cars and electronics. However, global trade remains largely stagnant.
The September and October orders suggest recovery for manufacturing overall, though orders are not expected to increase much until the spring of 2017. Industry forecasts continue to indicate that the capital manufacturing equipment market will remain soft through the end of the year. However, a return to consistent positive growth is expected in the second quarter of 2017, resulting partially from a three-year backlog in the aerospace industry.
If you would like more insight into economic conditions for the manufacturing technology market, attend the 2017 Winter Economic Update Meeting and Webinar on January 27, 2017, at 8:00 a.m. to noon at the Hilton Cincinnati Netherland Plaza or remotely at your desk.
Read the full press release here.