Finishing Activity Closing at 47.7 for the Second Month in a Row
After slowing contraction for each of four months straight, Finishing activity leveled off in April. The scenario is similar across manufacturing segments, perhaps reflecting increased conservatism as interest rates and inflation fail to come down.
The Gardner Business Index (GBI): Finishing activity that has been contracting for a year showed signs of picking up for several months such that a “level” April may prove to be only a pause in the improving trajectory.
Each of the five contracting components show at least a small degree of slowing contraction in April.
New orders and backlog slow contraction in April to about the same degree as in March, whereas the rate of slowing contraction for production is smaller.
Employment continues its “wobble” with slightly slowed contraction while contraction of exports in April is level with March.
Supplier deliveries continue to lengthen at a faster rate, the best sign among all components this month.
Expectations of future business (not part of the GBI calculation) are still positive but less so in April.
The Gardner Business Index (GBI): Finishing
Finishing activity contracts at a steady rate in April.
Key Component Activity (3-month moving averages)
New orders slowed contraction to a greater degree than did production.
