The annual rate of contraction in cutting tool orders has nearly bottomed. And, based on trends in the Gardner Business Index and macroeconomic manufacturing data, cutting tool orders should see double-digit growth by year-end.
The rate of capacity utilization increased for the ninth month in a row, which led to the annual rate of contraction bottoming out.
As permits are seasonal, January’s permit total was the highest for January since 2006. Short-term trends are indicating that the annual rate of growth will accelerate in the upcoming months.
The work of reinforcing and evolving manufacturing supply chains still has a long way to go in 2021. Firms which simply get their supply chain back to where it was pre-COVID will be exposed to inflating costs and the risk of lost sales opportunities.
Compared with one year ago, January’s monetary base was up 52.4%, which was the fifth month in a row and seventh in the last nine months with faster than 50% growth.
For the first time since December 2018, the year-over-year change in the real 10-year treasury rate was positive.
Machine tool orders reached their highest level since September 2018 (the last in-person IMTS) and their highest level outside of an IMTS month in three years.
January's manufacturing business activity data pointed to continued expansion in New Orders and Production activity.
In December, durable goods new orders reached their highest total since December 2018, growing at an accelerating rate for the second month in a row.
The Gardner Business Index (GBI) increased during January thanks to expansionary readings in five of the Index’s six components. The move higher was led principally by supplier deliveries, production and new orders readings.
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