PTDA Business Index for first quarter of 2012 indicates expansion and sales growth

The Power Transmission Distributors Association Business Index indicated that the first quarter of this year was the eighth consecutive quarter for business growth among PTDA members, with a reading of 75.4. Compared with a reading of 67.3 for the fourth quarter of 2011, the recently released first quarter results indicate the power transmission/motion control industry is expanding at a faster pace than before, according to PTDA. Both distributors and manufacturers saw strong growth in the first quarter of 2012.

Click here for the full report, which includes U.S. and Canadian breakout data in addition to historical data.

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.

PTDA members participating in the Business Index expect 2012 to be another year of growth with an average forecast of 11%, up 9% in the fourth quarter of 2011 survey. Conducted jointly by PTDA and Cleveland Research Company, the PTDA Quarterly Business Index was modeled after the Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market to arrive at an overall index. PTDA is a Chicago-based association for the industrial power transmission/motion control distribution channel.

-Bill O’Leary

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