Cutting Tool Orders Highest in 12 Months

Compared with one year ago, cutting tool orders contracted -5.0%, which marked the eighth consecutive month of month-over-month contraction.

In October, real cutting tool orders were $216.3 million, which was the second time in three months that orders were above $200 million. Additionally, this was the highest level for cutting tool orders since October 2018. However, compared with one year ago, cutting tool orders contracted -5.0%, which marked the eighth consecutive month of month-over-month contraction. Additionally, the annual rate of change switched to accelerating contraction from decelerating growth. This was the first month of annual contraction since April 2017. 

The GBI: Metalworking is a good leading indicator of cutting tool orders. The annual rate of change in the Index has contracted for nine-straight months. In the last downturn in late 2015 and early 2016, the GBI: Metalworking contracted more than 10%, year over year, as did cutting tool orders. In November, the GBI: Metalworking showed annual contraction of 11.8%. The Index is clearly indicating that the annual rate of change in cutting tool orders will contract for the remainder of 2019 and into 2020. The GBI typically leads cutting tool orders by seven-to-10 months.

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.