The anticipated dip in orders, metalformers say, is an indication of the summer slowdown typically experienced by the industry. The Precision Metalforming Association's monthly report shows that 24% of participants expect an improvement in economic activity during the next three months, down from 42% in May; 59% predict that activity will remain unchanged, up from 48% last month; and 17% report that activity will decline, up from 10% in May.
Metalforming companies also anticipate a modest softening for incoming orders, although 30% of participants forecast an increase in orders for the next three months, down substantially from 46% in May. Forty-seven percent of companies expect no change, compared to 39% the previous month, and 23% predict a decrease in orders, up from 15% in May.
At the same time, the Precision Metalforming Association noted average daily shipping levels remained fairly steady in June. Forty-eight percent of participants reported that average daily shipping levels are above levels of three months ago, down from 54% in May; 43% report no change, compared to 34% in May; and 9% report that shipping levels are below levels of three months ago, down from 12% in May.
William E. Gaskin, PMA president, summed up the latest survey results. “The outlook for new orders remains strong, even though it is somewhat softer than it has been over the past few months," he said. "The June 2010 outlook for new orders is almost precisely at the average levels of the past 30 years – which reflects 32%anticipating an increase, vs 30% this year); 45 percent expecting no change vs 47%in 2010; and 23% expecting a decrease, which is identical to 2010 levels. Only 9% of members anticipate that their shipments during the next three months will decline over their current levels.”