A modest pullback in production and backlog barely dented the reading, while capital spending intentions jumped and the future outlook remains optimistic.
The GBI: Metalworking didn’t budge from May, but lengthening lead times and high material prices offset softer backlogs and production.
Despite a slight dip to a reading of 56.3, the month marked six months straight above 50, even as production and backlog softened and material costs stayed elevated.
Backlog slipped to the break-even line and production eased, but a sharp jump in exports and renewed hiring kept the market growing for a sixth straight month.
New orders and production cooled from their spring highs, but stretching supplier lead times and rising optimism kept the market firmly in growth mode.
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