Moldmaking Index Reports A Sharp Acceleration in Contracting Business Activity
The Gardner Business Index (GBI): Moldmaking reported a sharp acceleration in contracting business activity as the Index fell over 3-points to 44.9.
The Gardner Business Index (GBI): Moldmaking reported a sharp acceleration in contracting business activity as the Index fell over three points to 44.9. Index readings above 50 indicate expanding activity while values below 50 indicate contracting activity. The further away a reading is from 50, the greater the magnitude of change in business activity. The latest reading came as a result of both new orders and production transitioning from expanding in October to contracting in November. All components of the Index contracted in the latest period. The Index, calculated as an average of six components, was pulled lower chiefly by the month’s strong contraction in production and backlogs.
November’s production activity reading fell 10 points from October’s — the fifth lowest reading in recorded history — and set a four-year low. The loss of support from both production and new orders activity saw the Index abruptly contract. November’s contracting activity readings for employment, supplier deliveries and exports were in line with readings from recent months.
The MoldMaking Index points to the expansion of new orders for the first time since COVID-19 shook the economy in March.
October saw slowing expansionary activity, an advancement caused by slowing supplier deliveries and an expansion in employment activity for a third consecutive month.
The Moldmaking Index jumped nearly five points in September, driven by surging new orders.