Monetary Base Contraction Accelerates

The month-over-month rate of change has contracted more than 10% for eight consecutive months.

In June, the monetary base was $3.290 trillion, which was the second lowest level since June 2013 (only May 2019 was lower). May was the 16th consecutive month of month-over-month contraction in the monetary base. For each of the last eight months, the month-over-month rate of contraction was faster than 10%. Only the ten-month period from June 1921 to March 1922 had a longer streak of double-digit contraction month-over-month. 

As a result, the annual rate of change in the money supply contracted at an accelerating rate for the ninth month in a row, falling to -10.2%. This was the fastest rate of annual contraction in nearly a century. The money supply is indicating that the current decelerating growth in machine tool orders (and quite likely capital equipment in general) will continue for some time.

Reports

Top Shops

‘Top Shops’ is a benchmarking and recognition program designed to help shops build their business.

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.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more.

Gardner Business Index

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