Friday, May 29, 2015
PMA’s May Business Conditions Report
CLEVELAND, OH—May 13, 2015—According to the May 2015 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect softening business conditions during the next three months. Prepared monthly, the report is an economic indicator for manufacturing, sampling 126 metalforming companies in the United States and Canada.
The May report shows that 24% of participants predict that economic activity will improve during the next three months (down from 33% in April), 60% expect that activity will remain unchanged (compared to 58% last month) and 16% believe that economic activity will decline (up from 9% in April).
Metalforming companies also forecast a decline in incoming orders during the next three months, with 35% predicting an increase in orders (down from 41% in April), 50% anticipating no change (compared to 47% in April) and 15% expecting a decrease in orders (up from 12% last month).
Current average daily shipping levels also dipped in May. Thirty-six percent of participants report that shipping levels are above levels of three months ago (compared to 46% in April), 43% report that levels are the same as three months ago (the same percentage reported last month) and 21% report a decrease in shipping levels (up from 11% in April).
The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 9% in May, up from 7% in April. The May 2015 figure marks a slight increase from this time last year, when 7% of companies reported workers on short time or layoff.
“PMA’s Business Conditions report for May reflects a typical seasonal adjustment in orders and shipments that generally occurs as we approach the end of Q-2,” said William E. Gaskin, PMA president. “PMA’s confidential Monthly Orders & Shipments Report of a sample of PMA members detailed that actual Q-1 orders and shipments grew by 3% and 2% respectively, vs. 2014, year-over-year. This reflects the slow growth pattern evidenced in GDP and Federal Reserve projections. The automotive sector continues to lead a general economic recovery in manufacturing in the United States.”