Monetary Base Slows Contraction

March's contraction decelerated from -13.0 to -11.0 percent.

March was the 13th consecutive month of month-over-month contraction in the monetary base, which was $3.396 trillion. The rate of contraction has accelerated almost every one of these 12 months, but March’s contraction decelerated to -11.0 from -13.0 percent. This was the slowest rate of contraction since October 2018. Yet, it was still the fifth month in a row that the one-month rate of change in the money supply contracted more than 10 percent.

As a result, the annual rate of change in the money supply contracted for the sixth month in a row, accelerating to -8.1 percent. This was the fastest rate of annual contraction since March 1938. The money supply is indicating that the current decelerating growth in machine tool orders will continue for some time.


Top Shops

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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.