The August Precision Metalformers Association report shows that 58% predict that activity will remain unchanged (down from 61% last month), with 25% of participants anticipating an improvement in economic activity during the next three months (up from 23% in July); 17% report that activity will decline (up from 16% in July).
More than one-third of metalforming companies forecast increased orders for the next three months. Thirty-eight percent of participants expect an increase in orders (up from 29% in July), 44% anticipate no change (compared to 51% last month) and 18% predict a decrease in orders (down from 20% in July).
However, the percentage of companies reporting decreased shipping levels grew in August. Only 22% of participants report that average daily shipping levels are above levels of three months ago (down from 34% in July), 41% report no change (compared to 54% in July) and 37% report that shipping levels are below levels of three months ago (up significantly from 12% in July).
“Metalforming companies experienced strong increases in orders and shipments during the first half of 2010 from the very low levels of 2009,” said William E. Gaskin, PMA president. “While the typical company now has experienced 12 months of new orders and 11 months of shipments above their 12-month rolling average, PMA’s August report indicates a cautious outlook for shipments during the next several months. However, the report also reflects that expectations for new orders into the 3rd quarter are fairly strong, with 82% expecting orders at the same or higher levels for the next three months.”
The full August 2010 Precision Metalforming Association report is available online.