PTDA Business Index shows slower growth in 3Q2015
The PTDA Business Index for 3Q2015 indicates continued slowing compared to the previous quarter with a reading of 37.7, down from 46.6 in 2Q2015.
The PTDA Business Index reading fell behind the October 2015 PMI Index of 50.1 for the second time this year.
According to Randy Breaux, senior vice president for Motion Industries Inc. and chair of PTDA’s Research & Innovation Committee, “There are a number of occurrences happening in the marketplace that have been creating slower growth and headwinds. The oil and gas market decline reached much deeper and wider than anticipated. No rebound is expected anytime soon.”
Breaux went on to say, “The steel industry also continues to struggle and the strength of the U.S. dollar makes it difficult for companies that manufacture products for export. We are seeing layoffs and closures in a number of plants across the country.”
[Note: The Index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the Index is above or below 50 suggests a faster or slower rate of change.]
The entire 3Q2015 PTDA Business Index report is available through PTDA’s website at ptda.org/Index. It includes distributor and manufacturer breakout data in addition to historical data.
The PTDA Business Index is modeled after the widely respected Purchasing Managers Index (PMI) and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC industry to arrive at an overall index.