Manufacturing orders posted $443 million in December 2018, according to the U.S. Manufacturing Technology Orders Report from The Association for Manufacturing Technology (AMT). That’s a 2 percent drop from November and a 6 percent decrease year-over-year. Although it was unusual that December numbers were lower than November (four times in the 23 years this survey has been running), overall growth throughout the year has been positive. Year-end order total for 2018 was $5.5 billion, 19 percent higher than 2017’s order total.
Government and defense orders rose in December, perhaps because decision-makers across industrial sectors were anticipating a long-lasting government shutdown. Aerospace, engine, and turbine orders rose by more than a third from November to December.
Many key economic indicators in the manufacturing sector were not available in December because of the government shutdown. Those that are available were generally positive. The ISM Purchasing Managers’ Index rose 2.3 percent to 56.6 in January, meaning that the manufacturing sector continues to expand. The Bureau of Labor Statistics reported that 304,000 people were newly-employed in January, a healthy number.
The result of trade penalties leveled against China is mixed, according to surveyed indicators. Measures put in place to prevent IP theft and leveraging U.S. companies in China’s market can also hurt U.S. businesses while not touching Chinese businesses.
“We finished a fantastic run up in manufacturing technology orders during 2018, with most analysts looking for good growth in units and modest growth in revenue in 2019,” said AMT President Doug Woods. “While our market looks healthy now, there are concerns that trade issues and slower manufacturing technology markets abroad will create headwinds in the U.S. later in the year.”
