Composites GBI shows faster activity contraction
The total index reading backed down in May from its anticipated expansion, contracting again to land at 46.8.
GBI: Composites Fabricating in May is down 2.8 points from April. Source (All Images) | Gardner Intelligence
The GBI: Composites Fabricating activity was 0.4 point away from reaching a reading of 50 in April, but May saw the biggest single month of accelerated contraction in years.
An index of 50, or what we call “flat,” proved elusive with May’s index of 46.8, down from April’s 49.6. Most manufacturing segments saw downturns this month, so it is likely that broad-scale economic factors were at play.
Accelerated contraction in production appears to be the only driver of accelerated contraction in the overall index. (This graph shows 3-month moving averages.)
No contracting component accelerated contraction to a degree commensurate with the total index. Production accelerated contraction a little while other components slowed contraction or stayed steady.
Supplier deliveries continued to lengthen at an accelerated rate, likely a function of lingering and/or new supply chain challenges since steady new orders cannot be stretching supplier deliveries.
Business sentiment (not included in the GBI calculation) has sustained again in May the same positive value it has had since March.
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