U.S. cutting tool orders up 10.2 percent in October
October 2019 U.S. cutting tool consumption totaled $216.1 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.
This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was up 10.2 percent from September's $196 million and down 3.3 percent when compared with the $223.5 million reported for October 2018. With a year-to-date total of $2.1 billion, 2019 is down 0.1 percent when compared with 2018.
“The modest decline in the cutting tool market that was forecast by IHS and others seems to have come to fruition. However, it is heartening to see that October improved over the prior month. We are also seeing improvement in some other recent indicators, such as the recent manufacturing employment increase in November and some of the Federal Reserve Bank Regional Updates, as well as some anecdotal evidence of a stronger finish to 2019,” said Bret Tayne, president of USCTI.
Scott Hazelton, managing director of Economics & Country Risk at IHS Marki, said the October increase over September largely reflects seasonality. October performance has fallen below September just once since 2012 (in 2016).
"Rather, October was the sixth consecutive month with a year-over-year decline, undoing a strong start to the year and bringing 2019 below 2018 on a cumulative year-to-date basis. This is consistent with PMI results which indicate weaknessin manufacturing in general, and with slowing car sales and continuing issues with the Boeing 737. Automotive and aerospace are the two largest demanders of cutting tool products. It is encouraging that October’s decline was the smallest of the past three months, and may indicate that a trough is nearing. Trade frictions appear to be easing, and Boeing is expected to increase production in the first quarter of 2020. It is premature to expect a resumption of growth, but 2020 looks to offer some improvement.,” he said.
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