Composites industry continues early 2022 trends into June
As in May, a majority of the components in the Gardner Business Index (GBI): Composites Fabricating continue movement into slowed expansionary growth.
June Index: GBI: Composites Fabricating showed a third month of slowed expansion, in line with May's minimal decline.
The Gardner Business Index (GBI): Composites Fabricating closed June at 55.8, nearly one point lower than May (56.7). This month’s reading is the second straight month of minimally slowed growth following a larger slowing in April. According to Gardner Intelligence, an index approaching 50 may eventually signal “flat,” which is essentially no growth. Alternately, trends above 50 reflect industry growth. The greater the degree it moves away from “50,” the faster and more positive that growth is.
New orders and employment. New orders showed the largest slowing of expansion in June. Employment expansion slowed to a much lesser degree but marked an end to its steadily accelerating expansion since the start of 2022. (This graph plots three-month moving averages.)
As in May, almost all component indices showed slowing rates of growth, including a slight slowing of advancements in employment readings for the first time since January of this year. New orders maintained the largest slowdown in June compared to other Index components, inching closest to a reading of 50. Growth rates for backlog and production were also reduced but to a lesser degree than new orders. Supplier deliveries are still lengthening at a continually slowing rate, but have yet to approach a reading close to its “normal” range. The magnitude of accelerated contraction in exports is minimal in June, about the same as in May.
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