July machine tool orders were 1,818 units and $321,898,000.

July’s unit orders were the second-highest of 2020. July’s orders contracted 9.5% compared with one year ago, which was the third slowest rate of contraction in the last 12 months. The annual rate of contraction was 20.1%. The rate has contracted for 12 months, accelerating for seven consecutive months. However, the annual rate of contraction was clearly starting to bottom in July.

Dollar orders contracted 16.3% compared with one year ago. This was the 18th straight month of dollar order contraction. The annual rate of change contracted for the 13th month in a row.

The West region had a strong month with unit orders up 2.2%.  Unit orders in the Southeast increased 25.8% compared with one year ago, growing for the second month in a row. 

Compared with one year ago, the Gardner Business Index grew 0.6%. It was the first month of growth month-over-month growth since October 2018.  The annual rate of contraction in the GBI decelerated for the second month in a row and tends to bottom out 7-10 months prior to machine tool orders bottoming out. That lag time could be accelerated this cycle because of significant government support for the economy due to the pandemic.