PTDA Business Index for second quarter indicates continued expansion but slower pace

The Power Transmission Distributors Association Business Index indicated that the second quarter of this year was the ninth consecutive quarter for business growth among PTDA members, with a reading of 54.2. Compared with a reading of 75.4 for the first quarter of this year, the recently released second quarter results indicate the power transmission/motion control industry is still expanding but at a slower pace than before. Both distributors and manufacturers reported decelerated sales growth in the second quarter.

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 sales growth with an average forecast of 8%, down from 11% in the first quarter survey. The full report, including U.S. and Canadian breakout data in addition to historical data, is available at www.ptda.org/BusinessIndex.

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.

 

-Bill O’Leary

 

 

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