ROCKVILLE, MD. — July U.S. machine tool consumption totaled $143.34 million, according to the United States Machine Tool Consumption report. This is 21 percent lower than June 2001.

Reported sales during the second quarter indicate an increase of 16 percent over the dismal results in the first quarter. Overall, the first half of the year is down 24 percent compared to 2001, with total sales to date of $1.28 billion.

The USMTC report is compiled jointly by the American Machine Tool Distributors' Assn. and the Assn. for Manufacturing Technology.

"Though the second quarter was lower than a year ago, it appears that we hit bottom and are starting to see improvement," said AMT president Don Carlson. "Sales are now showing a quarter over quarter improvement."

He cautioned that the manufacturing economy is far from robust so there will be no sharp rise in sales anytime soon. Carlson said significant increases are unlikely until capacity utilization rises.

Manufacturing capacity utilization remains at 74.4 percent, down from an average of 80.9 percent between 1967 and 2001. Substantial growth in the machine tool industry tends to occur only when there is greater than 78-80 percent utilization.

Carlson said capacity utilization is no longer the only driving factor for machine tool sales, however.

"New technologies are changing the marketplace and industry is looking for more efficient machinery," said Carlson. "Manufacturers are investing in capital equipment to increase productivity and remain competitive in the global marketplace."