Machine Tool Orders Grow for 8th Month

In June, machine tool orders were 1,978 units and $362,375,000.

The 1,978 units sold in June 2017 were up 7.2 percent compared with one year ago. The last two months have had a significantly faster month-over-month rate of growth than the prior five months. Also, this was the eighth consecutive month of growth. The 12/12 rate of growth accelerated for the third month in a row. In June, the annual rate of growth was the fastest since September 2014. However, the annual rate of growth in September was so strong because of the incredible machine tool orders from IMTS that month. Excluding September 2014, the annual rate of growth this was was the fastest since September 2012.

In June, real dollar orders were increased 11.1 percent compared with one year ago. This was the fifth consecutive month of month-over-month growth. And, the month-over-month growth rate was more than 11 percent each of the last three months. The annual rate of change grew at an accelerating rate for the third month in a row. The annual rate of growth in dollars (8.9 percent) is faster than the annual rate of growth in units (6.5 percent).

The GBI: Metalworking index remained strong in July. The index was at least 53.8 every month this year. This is a very positive sign for machine tool orders for the next seven to 10 months at least since that is the lead time between the GBI: Metalworking and machine tool orders. Therefore, the peak rate of annual growth in machine tool orders this cycle should be at least seven to 10 months away.