Finishing Activity Ends Year on A Low Note

The Gardner Business Index (GBI): Finishing fell nearly 3-points to close at 55.8, a fraction of a point below the Index’s January 2021 reading. Each of the six components which constitute the Index registered decelerating expansion in December. This occurs when the majority proportion of surveyed finishers reporting either expanding or unchanging activity shrinks. It is visualized in the data as a downward sloping line that remains above a reading of ’50’. By year end, only supplier delivery activity exceeded its January level. In contrast, new orders and production activity fell several points below their January comparables.

The results for the calendar year mimicked a parabolic trajectory that saw the Index rapidly rise to an all-time high in March before giving back more than 9-points by year’s end. The influence of supplier delivery readings throughout 2021 cannot be overstated. At 25-30 points above the level of most other index components, supplier delivery readings single-handedly supported most of the recorded expansion in the overall index. Beyond its direct effect on monthly total results, supply chain problems indirectly suppressed production and inflated backlog readings.

Products Finishing Index