July Finishing Activity: Continued Contraction, Closes at 45.1

The Gardner Business Index (GBI): Finishing contracted two points again in July, marking a total 6-point drop since last expanding in February.

• The usual suspects, backlog, new orders, and production, have themselves contracted faster each month, driving overall finishing activity contraction. 
• Exports keep plugging along, contracting at a fairly even rate for months on end, since October 2020.
• In July, components, employment and supplier deliveries continued to expand (barely) and lengthen more slowly, respectively, hinting that these components and the associated ‘woes’ may have turned a corner.
• That said, it is surprising that employment is knocking on the door of flat when, anecdotally, word is that it is still hard to find sufficient, reliable skills in manufacturing.
• Future business, a sentiment question asked in the GBI survey but not used in the calculation, lends some optimism in July, with more shops saying business is looking up than looking down in the next 12 months.

The Gardner Business Index (GBI): Finishing

Key Component Activity