Machine tool orders fell in November amid lower demand, AMT – The Association for Manufacturing Technology said today.
The decline was across the board – monthly, year-over-year and for the first 11 months of 2022, according to figures from companies participating in AMT’s U.S. Manufacturing Technology Orders (USMTO) program.
Orders totaled $436.5 million for November. That was 4.5 percent lower than an adjusted $457.1 million for October and down 32 percent from $637.3 million in November 2021.
For the first 11 months, orders totaled $5.1 billion, a decline of 3.7 percent from the same period in 2021. Until November 2022 orders had remained ahead of 2021’s pace.
“It was only a matter of time before 2022 fell slightly behind,” Douglas K. Woods, AMT’s president, said in a statement. “The fact that orders stayed above 2021 levels for 10 months really speaks to the continued strength in the demand for manufacturing technology.”
McLean, Va.-based AMT said demand for machine tools by economic conditions, including rising interest rates, is affecting orders. The Federal Reserve is boosting rates to cool the economy and combat inflation.
Woods said this year may be mixed.
“The manufacturing that has returned to the country will continue to spur economic activity, which may be tempered by rising interest rates and slowing demand,” he said.
Last week, the Institute for Supply Management said its manufacturing index showed the sector was in economic contraction for a second consecutive month in December. That index is considered a leading economic indicator and a barometer of where manufacturing is headed.
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