CHICAGO — The PTDA Business Index for Q4 2016 indicates continued slowing with a reading of 48.3, a noticeable rise from the 46.9 reading in Q3 but still below the January 2016 PMI Index of 56.0.
Manufacturers reported a 49.1 reading in Q4 2016, up from 46.8 in Q3 and thereby driving the rise in the quarter-to-quarter increase in the overall PTDA Business Index. In contrast, distributors indicated a lower reading of 47.0 in Q4, down from a 47.2 reading in Q3.
An index 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 PTDA Business Index is modeled after the PMI and likewise 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 entire Q4 2016 PTDA Business Index report is available through PTDA’s website at ptda.org/Index. It includes distributor and manufacturer breakout data in addition to historical data.