Compared with one year ago, capacity utilization contracted 4.4%, which was the sixth straight month that the month-over-month rate of change contracted at a slower rate and the slowest rate of contraction since February.
Michael Guckes and Christina Fuges discuss the October Moldmaking Index results and what they may mean in the closing quarter of 2020. October’s Index readings pointed to a strong base of expansionary activity during October and the potential for additional growth through the remainder of 2020.
Compared with one year ago, the index contracted 4.2%, which was the sixth consecutive month of decelerating contraction.
The nominal 10-year Treasury rate has been flat since March. And, with slowing inflation, the change in the 10-year Treasury rose to its highest level since January.
The Gardner Business Index (GBI) reported an accelerating expansion in business activity for October 2020 with a 53.9 reading. Removing the inflationary effect of sluggish supplier deliveries, the Index delivered a still encouraging reading of 52.4 and still above the comparable September reading of 50.1.
As manufacturers enter the fourth quarter of one of the most unique years ever, the Gardner Business Index (GBI) is one of the best resources available to help manufacturing leaders know how to prepare for the future.
Compared with one year ago, machine tool orders increased by 4.6%, which was the first month orders increased since June 2019.
September income was 5.5% more than one year ago, which was significantly faster month-over-month growth than the historic average.
September was the fourth straight month with faster than 11% growth, which was the first time that has happened since the summer of 1999 in the middle of the dot com bubble.
Consumer durable goods spending is growing extremely fast and indicating a bottom in the rate of contraction in durable goods new orders has occurred.
The GBI: Metalworking seemed to bottom in June indicating that the rate of change in cutting tool orders should bottom in the first quarter of 2021.
The monetary base is growing at its fastest rate since 2014 and should lead to increased spending on capital equipment in 2021.
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