Metalworking Industry Remains in Expansion: GBI Index at 56.2 in May

The Gardner Business Index (GBI) for Metalworking tracks industry activity via survey responses on new orders, production, backlog, employment, exports, and supplier deliveries. A reading above 50 signals expansion; below 50 signals contraction.

In May, the Metalworking Index held its expansionary trajectory, posting a reading of 56.2—just 0.6 points lower than the previous month but still comfortably above the 50 benchmark.

For the fifth straight month, the index reflects robust sector performance. The slight dip in May was driven by a modest decline in exports—the only component falling below 50—while employment surged, registering its strongest month‑to‑month increase in nearly five months. Material price inflation, accelerating for the seventh consecutive month and approaching record levels, continues to weigh on the Future Business Index, which now sits at 66.4 after a recent decline.

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GBI Components Scorecard provides the monthly change rate for each primary market driver that shapes the overall index.

On a three‑month average basis, five of six components remain in expansion. Exports remains the sole sub‑50 component, while production and supplier deliveries maintain strong levels above 60.

How to Interpret the Scorecard:

• Color indicates whether a component is above (green) or below (red) the 50 threshold for the current month.
• Shade shows the distance from 50—the darker the shade, the greater the deviation.
• Direction reflects the month‑to‑month change; an upward arrow signals improvement.

GBI Future Business Index gauges respondents’ outlook for the next 12 months. A reading above 50 denotes optimism; below 50 indicates contraction.

While the Future Business Index remains above the expansion threshold, it has softened, settling at a three‑month average of 66.4 in May.

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