The Power Transmission Distributors Association (PTDA), Chicago, Illinois, this week released its third quarter 2020 Sales History & Outlook Report (SHOR) that showed improving business conditions in the period despite continued decline in U.S. industrial production and in the PTDA Distributor and Manufacturer Total Sales Indices.
The PTDA Distributors Total Sales Index in the third quarter was a down 7.5% from the same quarter a year ago but an improvement over the second quarter’s 15% year-over-year decline. The PTDA Distributors Total Sales Index annual average is up 7.2% and 5% for 2020 and 2021, respectively.
The PTDA Business Index for distributors rose in the third quarter of 2020 to 69.8 while the manufacturer Business Index rose to 50.1, indicating both PTDA distributor and manufacturing activity picked up in the latter half of the year.
As the PTDA Manufacturer and Distributor Business Indexes are leading indicators to the PTDA SHOR Indexes, upward momentum in both is consistent with the expectation of early-2021 business cycle lows in the SHOR Indexes. However, renewed shutdowns in several European countries and recently implemented restrictions in several U.S. states may negatively impact activity in the near term.
The entire 3Q2020 PTDA Business Index report is available through PTDA’s website at ptda.org/Index.