PTDA Business Index shows slower growth
The PTDA Business Index for the second quarter of 2016 was 50.4, slightly lower than the 50.9 reading in the first quarter.
The PTDA Business Index reading is lower than the June 2016 PMI Index of 52.6.
Distributors reported an index reading of 53.7, signaling expansion. However, this is still down from a 1Q16 index of 56.9 and suggests pace-of-expansion is slowing from 1Q16. The employment reading of 51.1 signals increasing hiring, but is down from the 60.8 seen in the first quarter. Concerns about future growth or capacity needs may be driving this trend which is weighing on the PTDA Distributor Index. Distributor inventories and supplier deliveries are lower in 2Q16. These are positive signs that distributors are seeing increasing activity and, combined with positive new orders, points to a promising end to 2016 and a better year in 2017.
The entire 2Q2016 PTDA Business Index report is available through PTDA’s website at ptda.org/Index.