PTDA Index up slightly
The 4Q12 PTDA Business Index produced a reading of 50.7, which represents a very slight increase over last quarter’s reading of 50.3.
This indicates that the power transmission/motion control (PT/MC) industry expanded for the eleventh consecutive quarter at a slightly faster pace compared with 3Q12.
On average, sales rose 6 percent in 4Q12, up from the 5 percent growth seen in 3Q12. Distributor sales growth was also 6 percent in 4Q, up from 5 percent in 3Q, while manufacturers also reported sales of 6 percent, flat from 3Q. PTDA members expect 2013 to be another year of growth, with an average projection of 7 percent, up from the 6 percent outlook last quarter.
New to this report are trends in 14 end markets where members were asked to rate the strength of each market they serve. Thirteen of the 14 end markets were reported in positive territory. Pulp, paper & board mills production was reported as the weakest category, while oil & gas production was the best performing end market in 4Q.
The table below provides an overview of the results from the 4Q2012 index and a comparison with 3Q2012.
PTDA Quarterly Business Index
| 4Q2012 | 3Q2012 | |
|
Business Activity |
50.1 |
48.2 |
|
New Orders |
45.7 |
45.0 |
|
Employment |
56.3 |
59.5 |
|
Supplier Deliveries |
50.9 |
48.6 |
|
Inventories |
59.4 |
65.9 |
|
Prices |
76.8 |
71.2 |
|
Backlog |
40.0 |
41.8 |
|
Overall PTDA Index |
50.7 |
50.3 |
PTDA members expect 2013 to be another year of growth, with an average forecast of 7 percent. Notably, 83 percent of distributors and 78 percent of manufacturers surveyed expect positive growth in 2013.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
