December metal forming business conditions outlook favorable

Metal forming companies are anticipating a modest improvement in business conditions during the next three months, according to the Dec. 1, 2006 Precision Metalforming Association (PMA) Business Conditions Report. Conducted monthly, the report is an economic indicator for manufacturing that samples 151 metal forming companies in the U.S. and Canada.

When asked what they expect the trend in general economic activity to be over the next three months, only 30 percent of participants reported that conditions will decline (down from 38 percent in November), 19 percent believe economic activity will improve (up from 18 percent the previous month) and 51 percent predict activity will remain the same (compared to 44 percent in November).

Metal forming companies also expect an improvement in incoming orders during the next three months. Twenty-nine percent of respondents predict an increase in orders (up from 27 percent in November), 43 percent forecast no change (compared to 32 percent last month) and only 28 percent anticipate a decrease in orders (compared to 41 percent in November).

However, current average daily shipping levels compared to the past three months dipped again in December, reflecting an expected calendar year-end slowdown period. Only 18 percent of companies reported that shipping levels are above levels of three months ago (down from 23 percent the previous month), 43 percent reported no change (compared to 42 percent in November) and 39 percent reported that December shipping levels are below levels of three months ago (up from 35 percent last month).