September machine tool orders were 2,311 units and $358,767,000.

Machine tool orders of more than 2,000 units are typically a sign of a strong machine tool market. And, orders were more than 2,000 units for the second time in four months. September’s unit orders increased 4.6% compared with one year ago, which was the first month of month-over-month growth since June 2019. As a result, the annual rate of contraction decelerated for the second straight month. 

While unit orders increased compared with one year ago, dollar orders decreased by 5.5%. Therefore, the increase in unit orders was supported by a decrease in machine tool prices. The annual rate of contraction in dollar orders decelerated for the first time this cycle. 

Compared with one year ago, the GBI: Metalworking grew 9.5%, which was the third consecutive month of growth. The annual rate of contraction in the GBI decelerated for the fourth consecutive month and tends to bottom out 7-10 months prior to machine tool orders bottoming out. This would indicate that the annual rate of contraction in machine tool orders has likely bottomed out. The normal lag time could be accelerated this cycle because of significant government support for the economy due to the pandemic.