PMPA’s Index of Sales of Precision Machined Products rose to 85, the highest value for the year. This is an increase of 30.8% in the Sales index compared to the 2009 low of 65 in May for the 96 companies reporting this month. Our industry sales continue to recover.
Reason for optimism: October marks the fifth month in a row of increasing sales in the precision machining industry. The three month moving average crossed the 12 month moving average. For our industry, this data shows that recovery is underway. Thirty-four percent (34%) of participating shops reported double digit sales increases in October.
Sales Outlook: The percentage of respondents who felt that sales would decline over the next three months was almost equal to the percentage that thought sales would be up, (25% vs. 26%) with 48% expecting sales to remain about the same. The outlook for sales in the short term has stabilized.
Our report for October 2009 confirms that the sales of the precision machining industry are recovering. The percentage of respondents showing positive sales growth, the three month moving average for sales crossing the 12 month moving average for sales, five consecutive months of improved sales, and the rise of the sales index by 30.8% over the year’s low in May are strong and positive indicators of sales recovery.
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