PTDA Business Index indicates continued expansion
The PTDA Business Index indicated 2Q2011 was the fifth consecutive quarter for business growth among PTDA members.
With a reading of 70.2, the recently released second quarter results indicate the power transmission/motion control industry is still expanding. However, the rate of expansion has slowed as the 70.2 reading is the lowest the index has been since its inception a year ago.
The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.
The table below provides an overview of the results from the 2Q2011 index and a comparison to 1Q2011.
|
PTDA Quarterly Business Index |
||
|
|
1Q2011 |
2Q2011 |
|
Business Activity |
91.9 |
74.3 |
|
New Orders |
92.6 |
68.2 |
|
Employment |
78.8 |
69.3 |
|
Supplier Deliveries |
78.8 |
69.0 |
|
Inventories |
63.2 |
68.7 |
|
Prices |
94.5 |
87.1 |
|
Backlog |
78.7 |
71.1 |
|
Overall PTDA Index |
85.5 |
70.2 |
PTDA members participating in the Business Index have also lowered their full year outlook for 2011. On average, members are now forecasting 12 percent growth, down from the 1Q outlook calling for 14 percent growth.
INDUSTRIAL SUPPLY MAGAZINE
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