Moldmaking GBI Reveals Change of Pace in Contractionary Activity

While moldmaking activity continued to contract for the fourth month in a row, the pace slowed in December, closing the month at 47.2. This is up two points from November’s 45.2. The last two-point uptick in the Gardner Business Index (GBI) Moldmaking was in March 2022, when category activity was still expanding.

Five of six components contracted in December, but the downturn slowed a bit for production and ever so slightly for new orders, a positive note after several months of downturned activity. Keeping up does not appear to be a problem as backlog continued to contract.. New orders and exports have also experienced ongoing contraction, ultimately raising questions about the slight slowing of contracting production in December, and whether any components can expect expansionary activity in their future. Odds are that production will contract in line with demand components — new orders, exports and backlog — come January, however.

Employment contracted for a second month, likely resulting from a combination of current workforce challenges and anticipated reduction of need. Supplier deliveries remained the only expanding component, but it is on its way to falling in line with the others as supply chain issues resolve.