Finishing Activity: Overall Finishing Activity Contracted a Bit Faster in May, Closing at 46.5
Finishing activity, which slowed contraction each month of 2024 until leveling off in April, contracted faster in May for the first time since November 2023. Some degree of softening is seen across manufacturing segments, perhaps due to lingering concerns about interest rates and inflation.
The Gardner Business Index (GBI): Finishing activity had been on an encouraging trajectory, slowing contraction before leveling off in April (See last month’s reading), but now contracting a little faster in May.
- Most components changed only minimally in May, new orders and exports contracting just a little faster.
- Production and employment stayed about the same, while backlog contracted slower for the sixth month in a row.
- Supplier deliveries continued to lengthen at a faster rate, which is not explained by volume growth, so there may be supply chain challenges.
- Expectations of future business (not part of the GBI calculation) are still positive, leveling off in May.
The Gardner Business Index (GBI): Finishing
Finishing activity contracted at a slightly faster rate in May.
Key Component Activity (3-month moving averages)
New orders and exports contracted a little faster, production at about the same rate.
