Manufacturing outlook reflects tempered optimism for 4th quarter

The latest Business Conditions Report from the Precision Metalforming Association (PMA) shows that many companies surveyed expect a dip in business conditions during the next three months, from September 2013 to December 2013. Furthermore, metalforming companies also expect a decline in incoming orders during the next three months, with 18% expecting a drop-off and 37% anticipating an increase in orders. According to the most recent PMI Index, the confidence indicator refers economic activity in the manufacturing sector has continued to expand since the second quarter. The PMI Index registered 55.7% in August, an increase of 0.3 percentage points from July's reading of 55.4%. On the labor front, the percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 13% in September, up from 10% in August. Nonmetallic mineral products, fabricated metal products, and machinery each recorded comparatively smaller gains.