For the third consecutive month, metalworking activity has shown signs of improvement, inching closer to a neutral point on the index. February saw the index climb to 47.7, marking a 1.4-point increase compared to January. Notably, the pace of contraction in new orders slowed by 3.6 points, while production saw a 2.4-point deceleration, contributing to an overall slowdown in contraction.
Additionally, February witnessed a shift in the trend for backlogs, which had been experiencing accelerated contraction since September 2022. Employment and exports maintained steady rates of contraction, with the former consistently closer to the neutral point compared to the latter, which has remained unchanged since August 2022. Supplier deliveries saw a slight lengthening at a consistent rate over the past six months, reflecting a neutral outlook.
Although not factored into the GBI calculation, optimism for future business has been on the rise for the fourth consecutive month in February. This growing sentiment, while perhaps not entirely encouraging, hints at a hopeful outlook for actual business growth in the coming months.
Original source from MMS
