The Power Transmission Distributors Association Business Index reading for the third quarter was 46.9, down from the 2Q2016 reading of 50.4, indicating slower growth. The PTDA Business Index reading is lower than the October 2016 PMI Index of 51.9.
The index reading indicates the rate of change compared with the previous period. Readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.
The entire 2Q2016 PTDA Business Index report can be found here. It includes distributor and manufacturer breakout data in addition to historical data. The PTDA Business Index is modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC industry to arrive at an overall index.