The U.S. Manufacturing Technology Orders report for June 2016 showed a 17.5 percent increase in orders compared to May, but a 15.8 percent decline in orders for the year compared to the midpoint of 2015.
The monthly uptick is good news compared to May’s decline, and indicates that the industry is close to the bottom of the downturn says AMT VP – Strategic Analytics Pat McGibbon. The industry is seeing mixed signals that include the PMI, which was up in June but down in July, and consumer sentiment, which was down for two months and now looks to be headed up. Housing starts are stronger, while automotive is looking soft. Announcements for new manufacturing facilities and factory expansions give optimism for a significant increase in capital investment in the second half of 2017.
The market for manufacturing technology orders is likely to remain flat through summer, but orders are expected to increase after IMTS – The International Manufacturing Technology Show 2016. The historical average pickup in orders for the months that immediately follow IMTS is 32 percent. 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, attend the 2016 Global Forecasting & Marketing Conference, October 19-21 in Miami, Florida.
Read the full press release here.