The U.S. Manufacturing Technology Orders report for August 2016 showed a 34 percent increase in orders compared to July, and a 15.9 percent gain compared to August 2015. For the year, orders are down 12 percent compared to the same point of 2015.
This is the first time in 17 months that every U.S. region tracked by USMTO experienced growth, a strong indicator that the industry has moved away from the summer slump and perhaps its lowest point. This is the first month of 2016 that the year-to-year comparison has been lower than 13 percent.
Currently, the automotive industry and contract machine shops are driving this growth. It is anticipated that sales from IMTS – The International Manufacturing Technology Show will boost orders in the last months of this year.
Industry forecasts continue to indicate that the capital manufacturing equipment market will remain soft through the end of the year. However, a return to consistent positive growth is expected in the second quarter of 2017, and there are other reasons for optimism: The most recent PMI has climbed to 51.5, indicating industry expansion, China is seeing a steady increase in its GDP, and Germany is experiencing a surge in industrial production.
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.
Also, remember to vote. People who understand the vital role that manufacturing plays in each and every community, big or small, throughout the United States need to get out and vote on November 8.
Read the full press release here.