January Finishing Activity Up 3.3 Points vs. December

The Gardner Business Index (GBI): Finishing closed January contracting again, but slower than it had been, landing on the brink of flat.

• All GBI components found a little (very little…) ‘redemption’ in January. 
• Four components still contracted, but at the same or slower rates compared to December.
• New orders slowed contraction the most, disrupting what had been quickening contraction in the months prior. Along with backlog, however, new orders maintained one of the higher levels of contraction (i.e., not a good thing.)
• Contraction in production activity at least paused what had been a two-month ‘faster’ trend going into January.
• Employment dodged contraction in January with less pressure on the pace of growth, along with export activity, which saw less pressure on the pace of contraction.
• Supplier deliveries did in January what it has done for over a year now, and that is, lengthen at a slowed rate. Supply chain issues are either waning and/or workarounds are working.
• Future business is a sentiment question asked on the GBI survey that, while not included in GBI calculations, can be interesting. It showed faster growth in January, meaning more shops expect business to be better vs. worse in the next 12 months.

The Gardner Business Index (GBI): Finishing

Key Component Activity