Composites industry activity stayed steady in January

The GBI: Composites Fabricating activity remained in contraction in January, landing at a reading of 45.8. A shift downward compared to the previous month’s 46.2, January marks 10 months straight of contraction. Nevertheless, the small amount by which the index has contracted the last couple of months sheds some positive light.

Offsetting components contributed to a steady overall index. New orders and production showed some signs of slowing contraction, while employment, backlog and exports’ contraction activity accelerated. Employment has been experiencing slowing contraction for a couple of months now, so the acceleration was not necessarily expected, nor was the slowed contraction of new orders and production. It is far less surprising that backlog activity accelerated contraction after slowing in December, having been variable the past several months.

On the other end, supplier deliveries lengthened again but remained very close to flat. Business optimism (not included in GBI calculation) continued to grow in January, likely influenced by a steadying of increasing material prices and general hope for the new year.