Power transmission distributors see more positive growth than manufacturers

The PTDA Business Index for the third quarter of 2014 indicates slowing but continued positive growth.  However, distributors reported more positive business activity and new orders for the third quarter than manufacturers, a notable change from the first quarter and the second quarter of 2014. Despite this upward swing, the overall index reading of 67.5 was lower than the previous quarter’s reading of 68.7.

Provided by the Power Transmission Distributors Association (PTDA), 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.

The entire report is available through PTDA’s website at ptda.org/index. It includes distributor and manufacturer breakout data in addition to historical data. The PTDA Business Index is modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the power transmission/motion control industry to arrive at an overall index.

-Bill O’Leary

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