Machine tools see double-digit growth
By Staff -- Industrial Distribution, 12/1/1998
Newton, Mass.-- After suffering month-over-month declines this summer, September machine tool consumption rebounded 48 percent compared to August and was up six percent over year-ago figures. Industry observers cite high interest at the recent International Manufacturing Technology Show as the reason for the strong increase.The about-face was good for $713 million in total U.S. machine tool consumption, bringing the year-to-date total to $5.9 billion. According to the Assn. for Manufacturing Technology and American Machine Tool Distributors Assn.'s monthly report, 1998 as a whole is down seven percent compared to the same period in 1997.
"The strength in orders from the International Manufacturing Technology Show gave a boost to the market in September, surging 48 percent over August levels," says AMT president Don F. Carlson. "Earlier weaknesses had already resulted in lowered expectations for the full year."
Daryl Delano, Cahners Director of Economics, agrees, saying "I'm sure the industry would have been very disappointed if the show didn't result in a double-digit boost between August and September. Their expectations were probably guarded, though. Nothing fundamental has changed in the economy to generate stronger underlying demand."
Delano sees the underlying theme of the September USMTC Report as weakness, adding: "We're probably at the bottom of the down cycle for this industry sector, but I don't expect that we're going to see increases month-in and month-out until we get well into 1999."
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