Manufacturing Technology Market in Flux

Estimated reading time: 2 minutes

The trend data supports a tough market at the end of 2015 and an upbeat market in the second half of 2016. The Purchasing Managers’ Index remains above the 50 basis line by the narrowest of margins. The PMI arrow has moved to yellow and is trending downward reflecting the low number and the number of months that the index has trended this direction. Other key indicators that raise concerns are the global shipping levels, durable goods orders falling in September to the 12-month average, and household spending on dining. Hope for a faster turnaround than expected rests in the light vehicle sales climbing past 18 million on an annualized basis and, most importantly, a six point jump in consumer sentiment over the past two months. The trend in the indicators isn’t positive for manufacturing technology orders over the next 90 days. However, the trend in manufacturing durables remains stable and positive; order and production levels are expected to remain strong. 

The situation could quickly improve or take a turn for the worse. Being a glass half-full person, I predict that the continued strength in the auto industry, a renewed round of aerospace spending, continued increases in foreign direct investment and an improving global picture will have the manufacturing technology market back on track by mid-year 2016. 

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