Finishing Index Ends 30 Consecutive Months of Expansion
June Finishing Index is 47.5, over five points lower than the reading from the same month one year ago.
The Finishing Index registered its first contractionary reading since 2016 with a July reading of 47.5. The latest Index reading is over five points lower than the reading from the same month one year ago. Index readings above 50 indicate expanding activity, while values below 50 indicate contracting activity. The further away a reading is from 50, the greater the magnitude of change. The latest Index reading was supported by expanding supplier deliveries. The Index calculated as an average of its components was pulled lower by contracting activity in employment, new orders, exports and backlogs. Employment activity contracted in July for only the second time since the fourth quarter of 2016. The last time employment activity contracted was during November 2018.
July marks the second time in 2019 that new orders have contracted. In the year-to-date period, new orders readings have averaged 52.6, while production activity has averaged 56.4. This spread in new orders and production is one reason for the last nine months of contracting backlogs. July’s contraction in new orders and unchanging production activity further weighed on backlog activity. The last time that backlogs contracted at this rate was during the second half of 2016.
Related Content
-
TTX’s Automated Conveyor Carrier System Offers Wireless, Flexible Operation
ACC system designed for reliable, consistent point-to-point movement of everything from small to heavy parts.
-
Cobot Enters Paint Industry With Safety at the Forefront
This collaborative robot is the first explosion-proof solution for the powder coating and paint arena that meets the U.S.’ stringent safety requirements. Its lead-through teach programming and tablet control are especially appealing to small shops with little proficiency in robotics.
-
Masking Solutions Provider CFS Dramatically Expands Capabilities and Capacity
Custom Fabrication & Supplies (CFS) completed a new plant expansion packing 10 times the capacity into twice the space. It dramatically enhances the supplier’s custom capabilities to provide extremely precise and cost-effective masking solutions.