Power transmission industry tempers year-end outlook

The Power Transmission Distributors Association Business Index for the first quarter of 2014 indicates continued growth in the power transmission/motion control market but tempered expectations for year-end 2014.

This quarterly survey of PTDA’s distributor and manufacturer members continues to point to growth, with the first quarter of 2014 Business Index at 63.6, up from the fourth quarter of 2013 reading of 60.2. However, when asked about their outlook for the entire year, survey participants lowered their expectations from 7% growth to 6% growth, suggesting expectations of weakness later in the year.

The PTDA Business Index is 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 industry to arrive at an overall index. 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.

Click here to view the full report.

-Bill O’Leary

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