Metalworking Index Remains in Expansion Through March

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.

The Metalworking Index remains in expansion for the third consecutive month at 55.3.

Source: Gardner Intelligence

The Metalworking Index stepped back from its aggressive pace to start the year but maintained expansion for the third consecutive month in March, falling one point to 55.3. Most components saw a slight decline month-over-month, but five of six are still in expansion, and production held strong with no change — still above 60. A development to keep an eye on is a sharp increase in material prices. It is not a primary component used for the overall index calculations, but it jumped eight points to nearly 84, its highest reading since June 2022. With material prices on the rise and uneasiness around the war in Iran, the Future Business Index remained strong but experienced some regression, falling six points this month and leaving the three-month with no change.

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The GBI Components Scorecard reports the monthly change rate of primary metalworking market factors contributing to the overall monthly index reading.

Three-month averages for all components improved from month and year-ago results. Exports remains the only component below 50.

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.

The three-month average for the Future Business Index saw no change in March, level at 69.3. 

Find the latest metalworking market research and reporting at GardnerIntelligence.com.