Metalworking Index Rebounds in May but Short of Expansion
Activity picked up again after April’s stall reflecting tariff policy’s impact on manufacturing.
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The Gardner Business Index (GBI): Metalworking measures the current state of metalworking and machining activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion, and below 50 indicates contraction.
After a steep drop in April with business activity jolted by on-again, off-again tariff policy, May saw a return to some stability and a Metalworking Index reading of 48.8. The 2.8 points gained weren’t enough to push the index back into expansion, but it indicates metalworking shops have made adjustments and broader activity has picked up again. All components improved in monthly results over April, led by backlogs and new orders. However, the three-month averages reported in our Components Scorecard are weighed down by April, revealing supplier deliveries and employment as resilient indicators on the rise. The Future Business Index remains optimistic as stronger May results help smooth out recently waning outlooks for the next 12 months.
The GBI Components Scorecard reports the monthly change rate of primary metalworking market factors contributing to the overall monthly index reading.
Reading the Scorecard:
- Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion, and red indicates contraction.
- Shade indicates a value’s distance from 50. The darker the shade, the further from 50.
- Direction indicates a value’s change versus the previous period. Pointing up is always better.
The GBI Future Business Index is an indicator of the future state of the metalworking market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.
Three-month average for the Future Business Index, 58.5, remains positive overall despite a drop from highs at the start of the year.
Find the latest metalworking market research and reporting at .
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