The U.S. Manufacturing Technology Orders report for July 2016 shows that orders dropped 24.8 percent for the month compared to June, according to data from The Association For Manufacturing Technology (AMT). Year over year, monthly orders were down 23.0 percent compared to July 2015.

Forecasts indicate that the capital manufacturing equipment market could remain in negative territory through the end of the year. These forecasts indicate that positive growth will not return until the second quarter of 2017. However, it is anticipated that sales from The International Manufacturing Technology Show (IMTS) will boost orders later in the year, sustained growth in orders is unlikely in the immediate future.

“The automotive and aerospace industries moved into a summer slump, piling on to manufacturing’s ongoing challenges from the effects of a strong dollar, weakness in key export markets and a soft oil and gas industry,” said AMT President Douglas K. Woods in a press release. “Manufacturers are feeling cautious about the economy and hesitant to make new investments until they get a better sense of certainty.”

July 2016 manufacturing technology orders were valued at $246.38 million, down from $327.67 million in June. Year to date, orders are valued at $2,090.88 million, compared to $2,497.64 million at the same point in 2015, a drop of 16.3 percent. USMTO data is a reliable leading economic indicator as manufacturing companies invest in capital metalworking equipment to increase capacity and improve productivity.

By: DocMemory
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