The Power Transmission Distributors Association Business Index reading for the second quarter was 46.6, down from the 1Q2015 reading of 67.7. This is the first time the index, created in late 2010, has shown contraction in business activity, employment and inventories affecting the power transmission/motion controls industry.
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 1Q15 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.