48
NOVEMBER 2016 — PFonline.com
THE VOICE OF FINISHING
80
YEARS
With a reading of 46.0, the Gardner Business Index showed
that the finishing industry contracted for the 15th consecutive
month. The general trend of the index from November 2015
to June 2016 was up, but the index seemed to roll over in June
and has trended down since.
New orders contracted for the 15th straight month. The rate
of contraction in September was relatively slow but faster than
August. Last month, the production index increased for the
first time since November 2015. In September, the production
index was flat and the backlog index continued to contract.
While the index was
improving between
November 2015 and June
2016, it has dropped
significantly since.
Employment contracted
for the third month in
a row after two months
of expansion. Exports
continued to contract as the rate of contraction accelerated
notably the last three months. Supplier deliveries lengthened
for the sixth time in seven months.
Material prices continued to increase at a rapid rate. The index
dipped below 60 for the second month in a row, yet material
prices continued to increase at their fastest rate since late 2014.
Fortunately for finishers, prices received increased for the second
month in a row, which has increased in six of the last eight
months. The future business expectations increased substantially
in September, reaching its highest level since July 2015.
One reason the overall index has been weak is that the most
important industries for finishers have struggled. Amongst
finishers, the automotive index has contracted every month
but one since September 2015. Forming/fabricating (non-
automotive) has contracted since June 2015 and electronics has
contracted two months in a row.
September 2016—46.0
Future business expectations increased, reaching highest level since July '15 .
On the positive side, the
aerospace index expanded in
September for the third time
in five months.
In this month's survey,
we changed how we
asked about future
capital spending plans.
The change was to give
respondents the option of
selecting "zero" for future
spending plans instead
of a range from $0 to
$125,000. So, we cannot
accurately compare this
month's value to previous
months, but we expect to
have even more accurate
readings in months to
come.
One reason the overall
index has been weak is that
some of the most important
industries for finishers
(automotive, fabricating,
electronics) have struggled.
STEVEN R. KLINE JR.
Director of Market Intelligence
skline2@gardnerweb.com
Gardner Business Media Inc.
gardnerweb.com/economics/blog
GARDNER BUSINESS INDEX: FINISHING
Finishing Business Index
80
70
60
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40
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20
Jul
11
Jan
12
Jul
12
Jan
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Jul
13
Jan
14
Jul
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Jan
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Jul
15
Jan
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Jul
16