The U.S. Manufacturing Technology Orders report for July 2016 showed a 24.8 percent decrease in orders compared to June, and a 23 percent decline in orders compared to the same point of 2015.
The effects of a strong dollar, weakness in key export markets and a soft oil and gas industry contributed to a summer slump for manufacturers. Additionally, the reliably strong aerospace and automotive industries took a tumble. Feeling uncertain about the economy, manufacturers are reluctant to make new investments until they get a better sense of certainty.
The latest industry forecasts continue to indicate that the capital manufacturing equipment market will remain in negative territory through the end of the year, with a return to positive growth not coming until the second quarter of 2017. While it is anticipated that sales from IMTS – The International Manufacturing Technology Show will boost orders later in the year, sustained growth in orders is unlikely in the immediate future. The Institute of Supply Management’s PMI, a key measure of manufacturing’s health, dropped to 49.4 in August, indicating contraction.
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.