May 2025 U.S. cutting tool consumption totaled $207.8 million, according to the latest Cutting Tool Market Report (CTMR) published by the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology (AMT).

That total was down 2.3% from April 2025, and likewise down 5.0% from May 2024. The monthly decrease in May followed a 2.7% increase in April, while the year-over-year decline followed a longer trend.

Through May, year-to-date cutting tool orders were down 5.1% at $1.03 billion from a year earlier.

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“This summer, everyone is playing wait and see,” AMT Cutting Tool Product Group Chairman Jack Burley said USCTI’s July 21 report. “No one is investing in new production unless they have the security of a long-term project, such as for the defense industry, where cost is less important than delivery. Demand from the automotive market is weak, and the supply chain is getting squeezed by tariffs while vehicle manufacturers protect their bottom line. When we closely check the cutting tool data, unit cost appears to have increased slightly since January, most likely due to price increases. However, it’s too early to establish a trend with variables like surcharges to know the real costs. I don’t know who will win the wait-and-see game, but I hope it works out for everyone soon.”

Jarvis Cutting Tools President Costikyan Jarvis added: “Sales of cutting tools through May reveal a controlled retreat rather than a collapse. The 5% drop in year-over-year numbers is consistent with the PMI falling below 50 from March through May. Taken in context with other financial metrics like capacity utilization, new vehicle sales, and civilian aircraft production, the second half of this year will likely see a rebound in demand. In short, the cutting tool market remains under pressure, but forward-looking industrial indicators hint that the worst of the pullback may be passing.”

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The CTMR is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of what they tout as the primary consumable in the manufacturing process — the cutting tool.

The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time. Click on the chart for a larger version.