Finishing Industry’s Growth Slows
The Finishing Index registered 51.5 in November, coming down off a record-setting month.
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All components of the Finishing Index moved lower in November, sending it to its second-lowest reading of the year. The 51.5 reading for the month indicates that the industry was still growing, but more slowly.
The reading for new orders fell sharply in November to just above 50. This comes just after their multi-year high of more than 60 recorded in October. For reference, a reading of 50 indicates no change in conditions.
Registering 51.5 for November, the Gardner Business Index (GBI): Finishing grew at its second slowest pace in 2017, beating only April’s measure. Including this latest reading, the index’s average for the year to date decreased to 54.0. This is significantly higher than the year-to-date averages in 2015 and 2016, and slightly higher than the 2014 average of 53.9. It is up approximately 5.1 percent for the year-to-date period. Gardner Intelligence’s review of the underlying data for the month of November indicates that supplier deliveries, production and employment lifted the index higher, while new orders, backlog and exports pulled the index lower.
All components of the Finishing Index moved lower in November. Production and supplier deliveries, which have been key contributors to the index’s growth in the year, both moved sharply lower in the month and well below their year-to-date average readings. New orders recorded their lowest reading for the year, remaining nearly unchanged in November at just a few tenths of a point above 50.
