The U.S. Manufacturing Technology Orders report for May 2016 showed a 1.4 percent decrease in orders compared to April, and a 16.5 percent decline in orders year-to-date compared to the same point in 2015.
The monthly decline was softer compared to other recent months, which may indicate that the overall order decline is slowing. In May, significant gains were made in the agriculture industry, which has been slow since last year, as well as in the aerospace industry, which expanded significantly from just the previous month. AMT VP – Strategic Analytics Pat McGibbon says that June orders are expected to increase over May, and it could be the first time since late 2014/early 2015 that there will be a month-to-month increase in orders.
Brexit so far suggests a mild impact on U.S. manufacturing technology orders, and may pose a positive twist in steering foreign direct investment toward the United States instead of the United Kingdom.
Automotive and aerospace investment is expected to increase as companies are breaking ground for new plants in the Southeast.
The market for manufacturing technology orders is likely to remain flat through summer, but orders should turn upward in September, just about the time IMTS – The International Manufacturing Technology Show 2016 opens. The end of 2016 should finish strong, though overall still lower than 2015, with a robust 2017 anticipated for manufacturing.
If you would like more insight into economic conditions for the manufacturing technology market, join AMT for the 2016 Summer Economic Update Webinar, July 21, 11:00 a.m. to 12:00 p.m. and attend the 2016 Global Forecasting & Marketing Conference, October 19-21 in Miami, Florida.
Read the full press release here.