Precision Machining Index Hits 58.0 in July
The Precision Machining Index rose to 58.0 in July, its highest since May 2022, on strong production and orders for a seventh month of expansion.
The Gardner Business Index (GBI) for Precision Machining jumped 2.4 points to a reading of 58.0 in July. This marks the seventh straight month of expansion and the index's strongest result since May 2022, according to data from Gardner Intelligence.
In contrast to a broader cooling trend in manufacturing, the precision machining sector accelerated. The surge was powered by significant gains in its core domestic components.
Component Performance
Production and new orders each jumped more than five points during the month. Backlog rose nearly three points. Employment added more than a point. This created a rare month where every domestic-facing component advanced together.
Exports was the only component to remain below the expansion threshold of 50. It held essentially flat at 48.3. Supplier deliveries eased slightly but remained elevated. Material prices slipped to 82.4, a figure that continues to pressure shop margins.
On a three-month average basis, new orders, production, and employment all strengthened from their month-ago levels. All six components remain well above their year-ago readings, with exports being the lone component below 50.
Future Outlook and Index Details
Optimism in the sector remained especially strong. The Future Business Index, which gauges expectations for the next 12 months, posted a three-month average of 70.3 in July. This maintains elevated confidence and signals that shops expect the current momentum to carry forward.
The GBI measures the current state of precision machining activity through survey responses. It covers new orders, production, backlog, employment, exports, and supplier deliveries. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.
Industry participants can find the latest precision machining market research and reporting at GardnerIntelligence.com. For a deeper look at the underlying components and their trends, our stats page provides detailed breakdowns. Analysis of specific regional or shop-size performance is also available in our squad data sections.
The index's scorecard uses a color and shading system to indicate component performance relative to the 50-point threshold. Green indicates expansion, and red indicates contraction. The shade indicates the distance from 50, with a darker shade meaning a value is further from the threshold. The direction of change versus the previous period is also shown, where pointing up is considered better.
Find the latest precision machining market research and reporting at GardnerIntelligence.com.
