The Power Transmission Distributors Association Business Index reading for the third quarter was 37.7, down from 46.6 in 2Q2015. The reading fell behind the October 2015 PMI Index of 50.1 for the second time this year.
"There are a number of occurrences happening in the marketplace that have been creating slower growth and headwinds," said Randy Breaux, SVP for Motion Industries Inc. and chair of PTDA’s Research & Innovation Committee. "The oil and gas market decline reached much deeper and wider than anticipated. No rebound is expected anytime soon. The steel industry also continues to struggle and the strength of the U.S. dollar makes it difficult for companies that manufacture products for export. We are seeing layoffs and closures in a number of plants across the country."
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 3Q2015 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.
