Manufacturers of metalformed products are showing increased optimism for economic activity over the next three months, according to a monthly report from the Precision Metalforming Association (PMA).

The latest PMA Business Conditions Report, issued July 22, found that 27% of surveyed manufacturers expect an increase in general economic activity in the next three months — a second-straight increase following June’s 24% mark. 

While still relatively pessimistic, the latest figure is a notable improvement from the 16% of respondents who expected an increase in both April and May.

Meanwhile, 54% of July respondents expect no change in activity (48% in June) and 19% expect a decrease — much improved from 28% in June and 38% in May.

The report showed that metalformers also expect an increase in incoming orders over the next three months, with 36% of respondents affirming that outlook (24% in June), while 46% anticipate no change (47% in June) and 18% expect a decrease (29% in June).

Current average daily shipping levels held relatively steady in July, with 50% of respondents reporting no change in shipping orders (42% in June), 23% reporting an increase (29% in June) and 27% reporting a decrease (29%).

Other notes:

• On the staffing front, only 8% of respondents reporting having workers on short time or layoff in July (13% in June), while 36% indicated they are expanding their workforce (35% in June)
• 18% of respondents reported an increase in lead times in July, up from 13% in June

“Manufacturers welcomed the signing of the One Big Beautiful Bill Act (OBBBA) on July 4,” PMA President David Klotz said in the association’s July report. “The law brings long-sought tax certainty and includes important pro-manufacturing provisions advocated for by PMA’s government affairs committee and our One Voice advocacy team in Washington, D.C. — such as restoring 100% bonus depreciation, allowing full and immediate expensing of R&D activities, and making permanent the 20% passthrough deduction under Section 199A, which directly benefits two-thirds of our members. However, manufacturers still face challenges from trade uncertainty and continue to advocate for trade policies that support their global competitiveness and help drive job creation.”

See the full June PMA Business Conditions Report here.