PTDA Business Index indicates growth but at slower pace

The Power Transmission Distributors Association Business Index for the third quarter of this year produced a reading of 50.3, which represents deceleration from the second quarter reading of 54.2. This indicates that the power transmission/motion control (PT/MC) industry expanded for the 10th consecutive quarter at a slower pace compared with the second quarter of this year.

Both distributors and manufacturers reported decelerated sales growth compared with the last quarter. On average, sales rose 5% in the third quarter, down from the 7% growth seen in the second quarter. Distributor sales growth increased 5% in the third quarter down from 6% in the second. Manufacturers also reported decelerated growth of 6% in the third quarter, compared with 8% growth last quarter.

PTDA members expect 2013 to be another year of growth, with an average forecast of 6%. Notably, 83% of distributors and 78% of manufacturers surveyed expect positive growth in 2013.

The Business Index is conducted jointly by PTDA and Cleveland Research Company and is modeled after the Purchasing Managers Index. It 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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