Power transmission industry anticipates growth in 2015

The PTDA Business Index for the fourth quarter of 2014 indicates slowing but continued positive growth, according to the Power Transmission Distributors Association. However, manufacturers reported more positive growth in new orders, employment, supplier deliveries and inventories for this quarter than distributors, a notable change from second and third quarters of 2014. Despite this upward swing, the overall fourth quarter PTDA Business Index reading of 66.5 was slightly lower than the previous quarter’s reading of 67.5. Both distributors and manufacturers anticipate 2015 to be another year of positive growth, according to 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 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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