Index Eases After Setting Consecutive Record Highs
Falling three points in July, the Moldmaking Index’s slowing expansion in new orders and production activity continue to make apparent the widespread reporting of rising material prices.
.jpg;width=70;height=70;mode=crop;format=webp)
The Moldmaking Index fell just over three points in July after reaching an all-time high in June.
After setting an all-time high in both May and June, the Moldmaking Index fell over three points in July with a 60.5 reading, yet remains above the former high established in 2018. July’s overall result—the average of six component readings—was supported by supplier delivery and new orders activity. New orders, production, backlog and employment activity all registered slowing growth. The spread between new orders and production activity narrowed due to a relatively sharper slowing of new orders levels. This resulted in a nearly nine-point decline in backlog activity, suggesting that backlogs grew far more slowly in July than in May or June. Regardless, backlogs continue to expand at historically fast levels.
July reported a sharp slowing in the expansion of new orders while only a modest slowing in the expansion of production activity. The net influence of these activities resulted in a nine-point decline in backlog activity.
According to surveyed respondents, supplier delivery times are being made worse by increasing material prices. The proportion of the molding community reporting increasing material prices, for example, has risen nearly every month since April of 2020. In the three-month period ending July, the average reading of 90.7 indicates that between 82% and 91% of all respondents have been reporting month-over-month price increases during the summer months.
Related Content
-
Moldmaking Industry Expansion Slows “‘All Around”’ in May
Moldmaking continues on the slowing expansion trend for the month of May according to Gardner Business Intelligence’s latest report on the Moldmaking Index.
-
Moldmaking Activity Returns to Accelerated Contraction
February’s index dropped from the more positive readings seen in January, landing on par with July 2023 and remaining in contraction mode.
-
Moldmaking Index Continues Slowing Expansion Trend
The Gardner Business Index (GBI) and the majority of its components showed up in June at a slowing rate of expansion that has not been seen since early 2021.
