Being bullish on precision manufacturing is a logical conclusion from the strength of these just released economic indicators.
The PMPA Business Trends Report has a sentiment indicator for Sales for three months ahead. In January 2017, that indicator exploded, up 40% from December’s already optimistic number. (see the blue line on the chart below.)
But don’t take our word for it. Here are 7 economic indicators released last week that are at multi year highs:
- Consumer Price Index (CPI) up 2.8% year over year in February, up from 0.9% in July and at a pace not seen since February 2012;
- Producer Price Index (PPI) up 2.2% year over year, Highest year over year rate since May 2014;
- Manufacturing Production up 0.5% in February. Manufacturing Output is up 1.2% over the last 12 months, fastest pace since April 2015;
- Housing Market Index hit a 12 year high, its highest level since June 2005;
- Housing starts rose 3.0% in February. Single Family housing starts jumped from 819,000 to 872,000 a pace unseen since October 2007;
- Index of Consumer Sentiment from University of Michigan was close to January’s reading which was the best reading for this indicator in 13 years;
- Retail sales were reported at 5.7 % just below January’s 6.0% year over year pace, highest since 2012.
The weight of the evidence is clear.
The weight of the evidence makes it difficult to be anything but bullish on our business prospects.
What are YOU doing to take advantage of the opportunities that this strong economy is providing for YOUR precision machining shop?
Data courtesy Chad Moutray Ph.D., CBE, Chief Economist at National Association of Manufacturers Monday Economic Report