Cutting Tool Orders Continued to Grow in June

Real cutting tool orders were $186.6 million in June 2017, which was the third highest monthly total since April 2015. Compared with one year ago, orders increased 5.2 percent. This was the sixth time in eight months that the month-over-month rate of change increased. The annual rate of change grew for the second month in a row, with an accelerating rate of growth in both months.

The GBI: Metalworking showed the metalworking industry is rapidly improving. The month-over-month rate of change of the index grew for the 12th month in a row and the annual rate of change has grown at an accelerating for eight months. The annual rate of growth in June was the fastest since February 2011. The index leads cutting tool orders anywhere from six to 12 months. Therefore, the index is indicating that the annual growth rate in cutting tool orders should accelerate through at least the end of 2017.

The trend in durable goods new orders, which also is a good leading indicator of cutting tool orders, is moving in a positive direction for future cutting tool orders. Durable goods new orders grew at an annual rate for the first time since June 2015.