Cutting Tool Orders Grow for Seventh Month in Nov. '17

Compared with one year ago, cutting tool orders 8.6 percent in November.

Real cutting tool orders were $185.0 million in November 2017. November’s orders increased 8.6 percent compared with one year ago. This was the seventh consecutive month of growth. In those seven months, the rate of growth was as fast or faster than 8.6 percent in five of them. The annual rate of growth remained unchanged at 6.7 percent. This was the fastest rate of annual growth since May 2015.

The GBI: Metalworking showed the metalworking industry continues to grow at a rapid rate. The index ended 2017 at a very high level. The index’s annual rate of growth in December continued at a very fast pace, holding steady at a rate of about 18 percent for the fifth month in a row. The index leads cutting tool orders by about six months. Therefore, as the chart below shows, the index is indicating that, on its current trajectory, the annual growth rate in cutting tool orders should come close to 15 percent in the next six months.

Reports

World Machine Tool Survey

An independent annual survey that collects statistics from machine tool consuming and producing countries and compares them in real U.S. dollars.

Gardner Business Index

A diffusion index measuring month-to-month changes in activity at durable goods and discrete parts manufacturing facilities.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more that are then projected across the metalworking industry based on plant size.