June Cutting Tool Consumption Down 7.1% Year-Over-Year

Year-to-date consumption is down 8.8 percent from 2015, and the United States Cutting Tool Institute's president says all indications point to a weak outlook.

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June U.S. cutting tool consumption totaled $175.35 million according to the U.S. Cutting Tool Institute (USCTI) and AMT — The Association For Manufacturing Technology.

This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was up 5.8 percent from May’s $165.68 million and down 7.1 percent when compared with the total of $188.69 million reported for June 2015. With a year-to-date total of $1,030.80 million, 2016 is down 8.8 percent when compared with 2015.

These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“Certainly seeing a jump in shipments between May and June is welcome news but we saw this same event last year only to be disappointed again by July shipments. All indicators continue to point to a weak outlook as we search for a bottom to the current trend,” said Steve Stokey, president of USCTI.

“U.S. manufacturing continues facing strong headwinds due in part to a slowly expanding economy and a relatively strong value of the U.S. dollar,” added Bill Strauss, senior economist and advisor at the Federal Reserve Bank in Chicago. “The auto industry continues to out-perform and appears to be more resilient to these headwinds, while machinery and metal producers have struggled, although it appears that even these sectors may be at a nascent stage of recovery.”

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